According to a survey conducted by Gallup Pakistan, 59% Pakistanis agreed with the following statement: ‘You are often worried that you won’t have enough money for old age’. On the other hand, 41% disagreed with this statement. These results are a part of the nationwide Access to Finance Study conducted by the State Bank of Pakistan in 2015 with the intent of determining the degree of financial inclusiveness of the Pakistani public.
This press release is part of a special series that aim to foster an empirical understanding of financial inclusion in Pakistan and that hope to create a collaborative network of individuals working on the topic. Before starting any conversation on developing a methodology of increasing financial inclusivity in Pakistan, it is vital to be aware of the perceptions that the general public has with regards to banks, other formal financial institutions as well as individual and household decisions on financial matters. This particular press release aims to determine the proportion of Pakistanis who feel that they may not be financially secure in their old age. A lot of people are concerned about the state of their finances once they grow old and enter the retirement age. It is undoubtedly a legitimate concern for most people since they want to be able to sustain their existing lifestyles into the future without having to go through hardships or difficulties. To cater for this concern, the banking sector in Pakistan is employing various methods, such as savings accounts for senior citizens as well as different types of schemes for pensioners. The variety of financial services offered by the financial sector can, if utilized, enable customers/clients of banks to feel more financially secure and in control of their lives even when they hit old age. However, the proportion of Pakistanis in the formal financial net is still fairly low, primarily because of a lack of information regarding banks and their various functions. Thus, it would be beneficial for the formal financial stakeholders in the Country to overcome this information deficit and subsequently alleviate the misconceptions that Pakistanis have about banks so that more people can be brought into the formal financial sector.
A nationally representative sample of men and women from across the four provinces was asked, “Please tell me if you rather agree or rather disagree with these statements? [You are often worried that you won’t have enough money for old age]” In response to this question, 59% Pakistanis agreed with this statement whereas 41% respondents disagreed. The empirical results show that majority Pakistanis do feel anxious about their financial stability and security in old age.