Employee reward and benefits news
Asia in 'pension crisis'
Experts are calling for urgent reform of Asia's pension system, with many nations unprepared for the rapidly aging population that will come into fruition over the next couple of years.
The Organisation for Economic Co-operation and Development (OECD) fears that with countries like China possessing less stable pension systems than Eurozone countries facing financial hardship, such as Italy, Asia could find themselves in a monetary dilemma.
OECD analysts have warned: "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."
To ensure financial sustainability, pension systems must be modernised and adequate retirement homes established.
This is even more salient because the pension schemes of developed world nations that provide a "safety net" for old age poverty are largely absent in Asia.
To meet pension demand, Robert Colvile, writing in the Telegraph, suspects that Asia may look to the UK for pension provisions.
Posted by Editorial Team
