Pension savings plan expected to impact 400,000 independent workers and low-income people across Chile, Colombia, Mexico and Peru
The Multilateral Investment Fund (MIF) of the Inter-American Development Bank (IDB) Group and the MetLife Foundation announced today that they will jointly fund a regional project to promote pension savings among independent workers and the low-income population. The initiative, “Inclusive Retirement Savings: From access to use in Chile, Colombia, Mexico and Peru," will benefit an expected 400,000 low-income and self-employed workers, who will make voluntary contributions to their pension savings plans and thus increase their income and reduce their vulnerability in retirement age.
For the MIF and the IDB, which have extensive experience in financial inclusion and pension projects, this is the first time to support a regional initiative focused exclusively on promoting voluntary saving for retirement. Under the new regional project the following activities will be supported:
- Workshops to disseminate best practices among pension funds
- Studies to identify obstacles and solutions to make pension savings more universal, and
- Pilots to implement solutions to increase the use of pension savings among independent workers and entrepreneurs.
MetLife Foundation was created under the principle that all people need access to the right financial products to achieve their goals. Since 2013, it has focused its strategy on initiatives that promote greater financial inclusion. As part of this commitment, MetLife Foundation is providing $1.8 million of the $4.4 million behind the initiative, with the IDB contributing $1,765,000.
Joining forces, IDB, MIF and MetLife Foundation will expand the scope and results of this intervention. “We are enthusiastic and optimistic about the partnership, and hope that this cooperation will lead to greater public participation in voluntary pension systems in the Region,” said Bernardo Guillamón, Manager of the Office of Outreach and Partnerships of the IDB.
“Long-term saving is often overlooked as an integral part of an individual’s overall financial portfolio and it is important to address this, particularly for low-income, self-employed workers, who are not yet enrolled in automated contributions plans,” said Dennis White, President & CEO of MetLife Foundation. “We are proud to partner with the IDB to advance financial inclusion across Latin America.”
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.
About the Multilateral Investment Fund
The Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB) Group, is funded by 39 donors and supports private sector-led development benefitting low-income populations and the poor - their businesses, their farms, and their households. The aim is to give them the tools to boost their incomes: access to markets and the skills to compete in those markets, access to finance, and access to basic services, including green technology. A core MIF mission is to act as a development laboratory - experimenting, pioneering, and taking risks in order to build and support successful micro and SME business models.
About MetLife Foundation
MetLife Foundation was created in 1976 to continue MetLife’s long tradition of corporate contributions and community involvement. Since its founding through the end of 2014, MetLife Foundation has provided more than $670 million in grants and $70 million in program-related investments to organizations addressing issues that have a positive impact in their communities. Today, the Foundation is dedicated to advancing financial inclusion, committing $200 million to help build a secure future for individuals and communities around the world.
- John Ferriter