The rapid population ageing that is expected to occur in the next two decades in Asia highlights the need for urgent reform of the region’s retirement-income systems. This report examines the state of retirement-income systems in 11 non-OECD Asian countries and compares them with those in a selection of OECD countries. The report provides new data for comparing pension systems across different countries and combines the OECD’s expertise in modelling pension entitlements with input from a network of national pension experts, who verified key results and provided feedback to enhance the analysis.
Discusses the challenges faced by Asian countries in ensuring that their pension systems are financially sustainable and provide adequate retirement incomes. Many Asian countries currently have relatively low levels of pension coverage and benefits, which could result in increased poverty rates among older adults in the future. In addition, the high level of informality in many Asian economies creates difficulties in ensuring that workers have access to pension schemes and that contributions are accurately recorded and paid.
To address these challenges, the report recommends that Asian countries adopt a comprehensive approach to pension reform that includes measures to improve coverage, benefits, and the financial sustainability of pension systems. It highlights the importance of promoting formal employment, which can provide workers with access to pension schemes, as well as the need to strengthen the regulatory and supervisory frameworks for pension schemes.
The report also emphasizes the importance of improving financial literacy among workers and retirees, as well as enhancing the transparency and communication of pension schemes. This can help to build trust in the pension system and encourage greater participation in pension schemes.
Overall, this report provides valuable insights into the state of retirement-income systems in Asia and offers recommendations for policymakers and stakeholders to improve the financial sustainability and adequacy of pension schemes.