The provisions of national retirement systems in Asia are inadequate, opening up opportunities for private pension providers to fill the gap, according to findings from a new survey.

US consulting firm Milliman polled over 100 insurance companies and financial institutions in eight countries in Asia Pacific – Australia, Hong Kong, India, Indonesia, Malaysia, Singapore, Taiwan, and Thailand – in order to analyse the retirement income market in the region.

It found that 14% of Australian respondents and 34% of non-Australian respondents feel that retirement income provisions are completely inadequate. About half of both Australian and non-Australian respondents think their national retirement systems’ provisions are only adequate for less than 30% of the population.

“The vast majority of respondents feel that their national retirement systems’ provisions are inadequate,” Milliman says in in a research report released on May 8. “Surprisingly, this feedback was consistent across all surveyed markets – even in countries that have traditionally been considered to have more advanced systems, such as Singapore and Australia.

Respondents believe an ageing population is the most important factor causing retirement systems to be unsustainable. Many of these systems were designed decades ago when life expectancy at the point of retirement was relatively short. Although life expectancy has since increased, retirement systems have been slow to keep up.

Full Content: Asia Asset

Remember to subscribe to our free weekly newsletter for more news or subscribe to our service to get unlimited access