Pensions at a glance: Asia/Pacific
Many of Asia‟s retirement-income systems are ill prepared for the rapid population ageing that will occur over the next two decades. The demographic transition – to fewer babies and longer lives – took a century in Europe and North America. In Asia, this transition will often occur in a single generation. Asia‟s pension systems need modernising urgently to ensure that they are financially sustainable and provide adequate retirement incomes. In some countries – China, Vietnam, Pakistan, Chinese Taipei – pension levels are high relative to earnings. Early retirement ages, especially for women, provide additional financial pressure. These systems are unlikely to be sustainable as populations age and retirement-income provision matures. Yet many Asia/Pacific countries also face a problem of adequacy of retirement incomes. There are four reasons why current pension systems are unlikely to deliver a secure income in old age. First. coverage of formal pension systems is relatively low. Secondly, withdrawal of savings before retirement is very common. Thirdly, pension savings are often taken as lump sums with the risk that people outlive their resources. Finally, pensions in payment are not automatically adjusted to reflect changes in the cost of living. Ageing Asia must face these pension problems to deliver secure, sustainable and adequate retirement incomes for today‟s workers. Asia‟s ageing will be at its most rapid between 2010 and 2030. Given the long lag in pension-policy planning, there is now a narrow window for many Asian countries to avoid future pension problems and repeating many of the mistakes made in Europe and North America. But it will soon be too late.
|Date of creation:||Jan 2009|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Palacios, Robert & Sluchynsky, Oleksiy, 2006. "Social pensions Part I : their role in the overall pension system," Social Protection and Labor Policy and Technical Notes 36237, The World Bank.
- Whitehouse, Edward, 2007.
"Pensions panorama: retirement-income systems in 53 countries,"
14797, University Library of Munich, Germany.
- Edward Whitehouse, 2007. "Pensions Panorama : Retirement-Income Systems in 53 Countries," World Bank Publications, The World Bank, number 7177.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:36134. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.