New strategies needed across Asian retirement income market

Milliman has released research to analyse the future state of the retirement income market across the Asia-Pacific region.

Private market providers across the Asia-Pacific could potentially fill gaps existing from government sponsored retirement systems and employer-sponsored pension arrangements, according to global consulting firm, Milliman.

A survey of insurance companies and financial institutions conducted by Milliman across eight countries showed consumer demand, product development, and opportunity for growth were amongst the key factors most affecting the Asian retirement income market.

Milliman South-East Asia and India managing director, Richard Holloway, said new perspectives on ways to capitalise were coming from technology employed in Australia’s retirement sector, and potential interest from private providers.

“Across Asia-Pacific, there is the potential for private market providers to complement and fill gaps that exist from government sponsored retirement systems,” he said.

“The development of robo-advice has begun to gain traction in the superannuation industry in Australia and we expect the same to occur in Asia in the near future.”

Holloway said other nations across the Asia-Pacific region were likely to follow after Australia’s superannuation system had leveraged technology effectively.

“Technology advancements have now made it possible for financial institutions to provide consumers with tailored investment strategies and product solutions to achieve their goals in retirement,” he said.

More than 60 per cent of respondents to the Milliman survey believed financial advice was needed around the selection of features in a retirement income product, while most believed their national retirement system’s provisions were inadequate.

 

 

 

Related Stories

'The future of digital banking in Asia', Sandeep Lal, Head of Digital Bank, DBS Bank
It's an extraordinarily exciting time for the future of digital banking in Asia. Digitalisation is... Read More
In Sydney beats the heart of Australia’s thriving fintech industry – KPMG
According to the report, the number of Australian fintech firms has increased five-fold over the... Read More
Sydney lands $35m start-up incubation hub
The State will invest $35 million to build the “first of its kind” start-up hub, set to deliver 6,... Read More
Bank of Thailand, MAS secure dual fin services agreements
The fintech agreement provides a direct channel for BOT and MAS to share information on relevant... Read More

Comments