Kathmandu. Many people in Asia still lack pensions and retirement savings. As they get older, their financial uncertainty increases. <\/p>\n
People are living longer than ever before. However, many do not have money to sustain themselves long after losing their jobs or jobs. As a result, it can be difficult to manage food, medical care, and daily expenses as you get older. <\/p>\n
The Organisation for Economic Co-operation and Development (OECD)’s 2025 report highlights the problem in some Asian countries. The report reviewed retirement savings systems in Indonesia, Malaysia, Pakistan, the Philippines, Sri Lanka, Thailand and Vietnam. <\/p>\n
According to the OECD, pensions alone do not ensure financial security in old age. This can lead to a financial crisis if a pension or other saved money doesn’t cover an entire retirement budget. <\/p>\n
The main cause of this problem in Asia is that large numbers of people are not being paid regular salaries, job guarantees or pension benefits. These jobs are called employment in the informal sector. <\/p>\n
According to the International Labour Organization (ILO), in 2023, about 1.3 billion people worked in the informal sector in the Asia-Pacific region. It accounts for about 66 percent of the sector’s total workforce. <\/p>\n
This includes daily wage earners, small traders, self-employed individuals and casual income earners. Most of these people are not eligible for compulsory pension. Therefore, many of them have to rely on their savings in their old age. <\/p>\n
According to OECD data, less than 60 per cent of the working-age population in most of the countries reviewed are eligible for compulsory pensions. In Indonesia and Pakistan, the rate is about 10 percent. In Sri Lanka, Thailand and Vietnam, it is less than 30 percent. <\/p>\n
Another problem is that many people withdraw their pension funds before retirement. Withdrawals are available for employment, medical treatment, education, or household expenses. This can meet temporary needs, but it reduces savings for old age. <\/p>\n
According to the OECD, from 2016 to 2018, an average of 1.5 million people in Indonesia withdrew their pension savings every month after quitting their jobs. Early retirement is also exacerbating this problem. In the countries reviewed, the average retirement age for various pension systems ranges from 50 to 61 years. The sooner you retire, the less time you can save. In addition, if people live longer, they will have to live on that money for many years. <\/p>\n
For example, a person saves enough money to last 15 years after retirement. But if they live for 25 years, where will they get the money for the next 10 years? In the language of insurance and pensions, this problem is called ‘longevity risk’. <\/p>\n
An insurance or savings system can be useful to reduce this risk, ensuring regular income after retirement. One such system is the Allowance Fund. Simply put, the money is deposited annually and then it generates a regular income. Such funds also provide a lifetime income. <\/p>\n
However, the OECD notes that in many countries of Asia, products that provide regular income throughout life in old age are still limited. The case is still under pressure in 2026. The OECD and the Asian Development Bank Institute (ADBI) held a meeting in Colombo, Sri Lanka, on June 2 and 3 to discuss insurance and retirement savings in Asia. It is also necessary to protect the elderly from the risk of longevity. <\/p>\n
This problem could be worse in the future. According to the United Nations Population Fund (UNFPA), by 2050, one in four people in the Asia-Pacific region will be aged 60 or older. The number of people over the age of 60 could reach about 1.3 billion. However, only about 30 percent of the region’s elderly population receives any form of pension. <\/p>\n
If they don’t have enough savings or insurance, the cost burden can add to the family and the government. Medical expenses, daily expenses, and care costs can cause great stress, especially in old age. To mitigate the crisis, the OECD has recommended bringing the informal sector and the self-employed into the pension system. The agency says, “People can easily save for pensions. This should limit the possibility of withdrawing pension funds before retirement, except for necessities. \u2019<\/p>\n
It also stresses the need for the organization to promote regular or lifetime income rather than giving away all the money at the time of retirement. In addition to pensions, products such as life insurance and allowance funds may play a role. Because pension alone is not enough to ensure financial security for the elderly. After retirement, you need to have enough income to cover necessary expenses for as long as you live. \u2013InsuranceNews from BD<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Kathmandu. Many people in Asia still lack pensions and retirement savings. As they get older, their financial uncertainty increases. People are living longer than ever before. However, many do not have money to sustain themselves long after losing their jobs or jobs. As a result, it can be difficult to manage food, medical care, and […]<\/p>\n","protected":false},"author":16,"featured_media":311738,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45044,45159],"tags":[],"class_list":["post-311755","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/311755","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=311755"}],"version-history":[{"count":1,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/311755\/revisions"}],"predecessor-version":[{"id":311756,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/311755\/revisions\/311756"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/311738"}],"wp:attachment":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=311755"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=311755"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=311755"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}