Volunteering = 150.000 euro more pension
The Solution of Tradisys for the challenge of APG
WINNING TEAM: TRADISYS
Manage your own retirement plan
FIRE (Financial Independence and Retiring Early) is a movement by individuals who live frugally and save intensively to achieve early retirement in the not-so-long-term. While this seems radical in our consumerist culture, many young people are retiring in their forties to live comfortably and pursue non-profitable ambitions.
APG, the largest pension service provider in the Netherlands and one of the largest worldwide, challenged the teams to help participants create and manage their personal financial roadmap to achieve early retirement; provide knowledge and tools to make becoming financially independent effortless and user-friendly.
Incentivizing people to start saving for pensions
Most people do not start putting aside additional money for retirement early on, but are substantially involved in social work.
The teams solution, a volunteer job marketplace called Good-Around.org connects social organisations who need volunteers with citizens willing to contribute.
The remuneration in the Netherlands is tax-free up to 1700 euro per year and in this solution is deposited into an optional pension plan. With 4.2 hours volunteering a week (national average) at 5 euro per hour, there will be an extra 150.000 euro in peoples retirement fund (based on 35 years of volunteering and 7% annual return delivered by the pension fund).
The solution can be technically implemented without blockchain, but it is beneficial to use:
1) The optional pension plan in question is a long lasting endeavour spanning over several decades before the person retires. Immutable record history is essential for transparency in such case.
2) All pension funds should be able to participate in the solution: there has to be a common reward mechanism for all end users involved, regardless of which fund they are subscribed to and especially if the user changes pension fund.