In African societies, it is not rare to see grandparents serving as guardians/parents to their grandchildren. Natural phenom like armed conflicts, diseases and rural-urban migration are part of the genesis.
Yet, the pension situation or financial security for the aged is appalling, making life uncomfortable for the aged. Old age is not pleasant at all and dreaded by many on this continent.
Hindrance to Sustainable Pension
There are myriad factors that make this uncalled for circumstances possible. Less than 10% of the elderly people has a contributory annuity in Africa. Pension funds mostly cover formal sector workers. With most African economies having 80 percent in the informal sector, implementing a pension system is always complicated.
Moreover many don’t earn enough to have the incentive to save for the rainy day. In many instances, gratuity is so meagre it is very ridiculous.
Then again, savings for retirement is hindered by the sorry state of what accessing bank accounts in Africa entails. Deplorably, an adult population of merely 24 percent in a continent of 1.2 billion people with bank accounts stands no prospect of stimulating a culture of savings through the formal process. Many rather resort to unconventional means of saving their wealth which on regular basis leave a sour taste in their math.
There is no way you can also count out the inadequacy of institutions that recognise properties of the poor. Without property title and address systems, it is difficult to participate in the formal sector.
Even though the majority of African democracies claim to have decentralised, hardly has government services been closer to the populace. Governance is still centred in the capital cities of the giant continent, where you have to apply for services like incorporating your business, processing retirement benefits and getting a passport.
Most pension funds in Africa are public managed and are not pitied the ambiquitous corruption that has engulf most countries. Sometimes it takes years before retirees even receive their entitlements, sending some to their early grave before the funds arrive. This is either because of bureaucratic inclinations, or political and administrative malfeasance.
Just last week, pensioners in the Kwara State of Nigeria were accusing the government of refusing to pay gratuity worth more than $22 Million for three years. The chairman of the pensioners association stated that several attempts to appeal to the authorities have fallen on deaf ears. Why should people have to plead to get their own contributory annuity paid?
On the other hand, many African countries have to dispense with increasing inflationary rates. The lowest inflation rate on the continent is Mauritius’s 6.6 percent and the unusual is 479.70 percent representing South Sudan’s exceptional quantitative easing policy.
Economic prevalence such as the above alienates a sustainable pension scheme both by the public and private entities. At the end of retire, pension amounts to nothing oftentimes. There are instances where beneficiaries have regretted not investing their contributions elsewhere instead.
Technology-Based Solution
Refreshingly, Blockchain Technology and applications are decentralised tools with enormous capabilities of creating financial inclusion and minimising the trust for human institutions. A market-based solution to poverty start-up utilising the Blockchain is poised to reverse the quagmire.
Humaniq is a novel blockchain bank employing Ethereum as the nucleus platform for commercial services, essentially loans, credit, remittance payments, and insurance, whereas using biometrics to replace passports and signatures, and an ICO and shared ownership instead of shareholders, simultaneously with an investment fund for third-party start-up acquisition and expedition.
It offers a stage where all your necessary financial transactions can be done right on your smartphone. Its principal goal to allow the global two billion people without bank accounts access to banking is innovative.
None Can Steal Your Pension
Humaniq believes that a CryptoPension is the remedy to the current condition pertaining in Africa. The technology start-Up acknowledged that many Africans have no big capital but they can still contribute smaller amounts like 0.00001 per every transaction. With its visual-centric approach, everyone from the literate to the illiterate can all access this retirement service.
More importantly, contributions will be invested prudently in Humaniq tokens for contributors with all transactions recorded on the Blockchain. In occurrences of this nature payment of pension cannot be unnecessarily delayed or stolen. Contributors can always monitor their investments for old age. No one should be able to steal pension, with Humaniq it is possible.
Deflationary Economy
In the Blockchain domain, your contributing funds are out of the reach of the profligate state with no chance for abuse. The terrible dependence on the state to plan people’s future will be obsolete and individuals empowered to handle their own affairs in their own interest. Financial security consequently becomes a reality for those who yearn for it.
As a cryptocurrency token, Moreover, its major advantage is the inflation-proof nature. This means contributors have no worries about inflation dissipating their hard earned income. The gains are fulfilling, signifying a judicious investment that leads to comfortable, peaceful and stress-free retirement.
A CryptoPension, therefore, deserves a push in order to facelift the life of the older generation. Without a doubt, the deflationary economy makes pension system viable.
