End of Service Prediction for a State-Owned Pension FundBFSI
Pension funds serve as essential pillars of financial security, offering individuals a reliable source of income during retirement. Through regular contributions from both employees and employers, these funds accumulate assets over time, ensuring retirees have the means to maintain their standard of living.
State-owned pension funds are designed with the explicit purpose of enhancing the financial security of citizens. By pooling resources from various sources, including government allocations and employee contributions, these funds create a robust financial safety net for retirees. The overarching goal is to ensure that individuals can enjoy a dignified retirement, free from financial hardship
The client, a state-owned pension fund, intends to improve the financial security of its citizens and maximize revenues by retaining contributors who opt for pension benefits rather than opting out at the end of their service.
Challenges:
- External Data Preparation
Data was in varied forms and coming from external sources need to be standardized.
- Model development
To develop model to fulfill client’s needs data is analyzed to find the key factors and their impact on Pension funds.
- Predictive Model Development:
Developed and implemnted a predictive model to forecast the outcome of contributors.
- Execution of Retention Campaigns:
Based on the predictions, the client executes targeted campaigns to retain contributors who are likely to opt out at the end of their service.
Benefits
- Maximized Retention:
By accurately predicting contributor behavior, the client can maximize retention of contributors opting for pension benefits, thereby increasing the stability and longevity of the pension fund.
- Improved Financial Security:
Encouraging contributors to remain invested in pension plans enhances their financial security post-employment, contributing to overall economic stability.
- Optimized Revenues:
Maximizing retention of contributors leads to increased revenues for the pension fund, ensuring its sustainability and ability to meet future obligations.