What are micro pensions?

Micro Pensions are small amounts of money individually saved during working live and invested collectively to yield returns. On the agreed withdrawal date the accumulated capital can be paid out in lump sum or periodically via an annuity. Micro pensions are aimed at low-income people who are often financially illiterate and have limited access to financial services. Thus, these micro pensions need specific characteristics in design and distribution to make the product is affordable for people working in the informal economy.

Micro Pension is the sought-after solution to create a more secure financial future to contribute to the prevention of old age poverty. By saving during one’s active working life people will be better financially supported when they reach old age and cannot rely on working anymore to provide themselves with an income.

Small amounts of money can be saved individually and invested collectively to grow benefits. Benefits are dependent on investment returns. Micro pensions are individual based long term products where trust in the pension trustee is critical as is relevant legislation.

With the switch to micro pensions people can instead of putting money under their matrass, save in an account and receive the benefits when money is invested and protected by a trustee and legislation.

Together with our partners we design and set up micro pension funds and products to service people working in the informal economies in emerging countries.

Success factors for micro pensions

Micro pension initiatives worldwide struggle with the cost structure because of the low amount of contributed deposits. Experience is needed for setting up administration and information systems to run a sustainable pension scheme. Costs per pension participant must be brought down to a few dollars per year.

To make micro pensions schemes successful and reach commercially viable and stable volumes the distribution model should be very efficient and trustworthy. Marketing in the shape of financial education is needed to create awareness of old age risks and possible actions people can take to save for their old age. After initial registration motivating the clients to make regular deposits is important for sustainability and long term success.

The accessibility and ease of use of the financial product designs must be adjusted to the specific demands of the user group of the micro pension product, from local fund managers to pension participants. It is crucial to consider local culture. Therefore, a specific pension participant customer journey is critical.

BluePrint Pension Services’ solutions are developed to address these challenges. With our experience we support our clients in reaching their goals.

For more information on micro pension initiatives worldwide visit the website of our partners www.peoplespensionholding.com specialized in the development of micro pensions.

Impact of technology

Technology enables people to access financial services. Especially mobile payment and communication are drivers behind realizing financial inclusiveness. By the combined use of these technologies several hurdles in accessibility and affordability of micro pension products can be overcome.

In Kenya, M-Pisa’s mobile payment system revolutionized financial services and provides the majority of the country's citizens access to banking services, no matter how isolated they are.

About 60% of Kenyans living on less than $2.50 a day have mobile phones. Kenyans, even those at the bottom of the economic pyramid, have adopted the technology faster than any other African country. One study from the University of Edinburgh showed that rural households saw their income increase anywhere from 5% to 30% when they used M-Pesa.

M-Pesa has served as an example for many more low income countries in physically connecting rural areas. It seems counter-intuitive, but Africa is building an infrastructure based on technology. The mobile phone system has become a model for how goods, services, and ideas should be transferred. Mobile phones have become the best example of the power of connectivity. (www.techrepublic.com/article/the-worlds-unlikely-leader-in-mobile-payments-kenya)

For our client, People’s Pension Holding, we have developed a pension solution that combines mobile payments and access to pension solutions in an online system that guides the client step by step. From becoming a member, to paying into their pension account till savings withdrawal and periodical disbursements at retirement age.

Learn more about us

You can follow our activities on Facebook and read more about the background of our team members on LinkedIn. If you would like to come and talk with us please contact us for an appointment.


BluePrint Pension Services BV
Van Beuningenstraat 79
2582 KL Den Haag
The Netherlands

Robert Timmer



Beryl van Andel



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