Financial Inclusion Challenges in the Pension Market

I recently tried opening a Voluntary Pension Scheme (VPS) account with two major banks in Pakistan, HBL and Bank Alfalah Limited. The experience was telling. At HBL, I visited twice. There was no designated staff available to guide on VPS. I was repeatedly told the relevant person would “come at 12.” There was no proactive support and no follow up. At Bank Alfalah, I met the team and specifically asked about VPS investment options. The explanation was simply, “It’s like a pension.” There was no discussion on: • Fund allocation choices • Equity versus debt exposure • Risk profiles • Management fees • Front or back end loads • Tax implications • Long term return assumptions I was told documentation would be shared. It never was.... Eventually, I opened the account digitally through an app because the traditional banking front end seemed far less interested in facilitating an individual investor than a fintech interface. This raises a larger question. If financially literate individuals who are actively trying to invest for retirement face friction and indifference, what does this mean for broader pension penetration in Pakistan? We talk about savings gaps, capital market depth, and long term domestic resource mobilization. But customer facing execution is where trust and participation are built or lost. Retail investment culture cannot grow if frontline banking engagement treats investment products as an afterthought. There is massive potential in VPS adoption in Pakistan. But it requires: • Trained advisory staff • Transparent fee communication • Proactive client education • Accountability in follow up Financial inclusion is not just about opening accounts. It is about enabling informed participation. Would love to hear if others have had similar experiences or better ones.

40% of Americans have no retirement savings account. That’s not just a financial planning problem. That’s a distribution problem. An access problem. And, frankly, a failure of the banking industry. Banks and credit unions were built to help people prepare for the future. Yet millions of working Americans—especially younger, lower-income, and minority households—aren’t being reached, served, or empowered. This isn’t about “financial literacy.” It’s about financial systems that are too complex, too exclusive, or too tied to employer access. If 4 in 10 Americans can’t build retirement savings, it’s time to stop blaming consumers. It’s time for financial institutions to innovate, collaborate, and meet people where they are—digitally, behaviorally, and emotionally. Financial wellbeing is the next competitive advantage. Who’s building it? #Banking #CreditUnions #FinancialWellbeing #Retirement #Fintech #FinancialInclusion #Strategy

Nearly half of disabled savers are unlikely to reach a minimum standard of living in retirement. For many disabled people, saving is a luxury, not a reality. Disabled households with at least one disabled adult or child face extra costs of £975 per month on average. This figure considers receiving welfare support, so it often leaves little to no disposable income for saving. Employment barriers and lower wages compound this financial strain, making it even harder to build financial security. Living in poverty or destitution and facing systemic barriers, the daily struggle for survival often overshadows long-term financial planning. We must address the root causes of this inequality and ensure that everyone has the opportunity to live with dignity, both now and in the future. It's time for systemic change. We need to create a society where disability is not a barrier to financial security. Everyone has a role to play: - Businesses: Create inclusive workplaces and offer supportive benefits. - Government: Increase disability benefits and expand access to financial services. - Individuals: Advocate for change and educate others about the issue. What are some specific ways to help disabled people achieve financial security in retirement? #DisabilityInclusion #RetirementPlanning #FinancialSecurity https://lnkd.in/g-w8PUdP