Ageing Asia and the challenge for pension systems
Wednesday 12 May 2010 - by Daniel Sage
An ageing population is an issue for many regions in the world but East Asia has particularly big hurdles to overcome in this area. Daniel Sage talks through the regulatory challenges for governments attempting to deal with huge socio-economic changes
A globally ageing population adds intense strains to healthcare, old-age security, the labour market and care networks, forcing people to adjust their expectations for later life.
Asian pension systems are far from uniform. Some are managed privately and are defined-contribution, others are government-led and defined-benefit. Some systems pay benefits as a lump sum, as opposed to an income stream, upon retirement. This can be as low as 55 for an Indonesian male or as high as 65 if you live in the Philippines.
It is widely acknowledged that pension systems should aim to meet some common objectives and, despite key system differences, many countries across the region collectively fail to meet such accepted goals.
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