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Securing retirement: what makes a strong retirement system

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Retirement systems were built for a different era. Longevity realities, workforce insights, and plan design choices that help build better retirement.

  • Elvin Tharm

    Head of Emerging Markets Asia Retirement

Retirement is a decades-long journey. We focus on helping our customers to take meaningful steps today to achieve better retirement outcomes — confidence today, sustainable income tomorrow, and resilience for longer.
retirement

People are living longer, making retirement a decades-long phase that requires more than a “finish-line” balance. Many retirement systems weren’t built for this, leaving workers exposed to longevity, inflation, market swings, and surprises – especially when retirement comes earlier than planned.

Employers can help by making saving easy, keeping workers appropriately invested, and turning savings into sustainable income. Strong plans expand access, combine flexibility with smart defaults and guardrails, and provide guidance – measuring progress in income terms so employees know what their savings can deliver.

Key facts:

  • 1.6 billion people aged 65+ by 2050 — Asia account for nearly two-thirds of that population.
  • Retirement last 30 to 40 years now so success is 'income sustainability', not just a retirement date.
  • Replacement rates fall below 50% of pre-retirement income, leaving a real adequacy gap.
  • 1 in 2 retirees exit earlier than planned — the plan must be resilient to evolving life-stages.

Action points:

Adequacy and longevity protection

Design for income that lasts and build through-retirement defaults — not just accumulation.

Flexibility with safeguards

Offer professionally managed default and withdrawal guidance – to keep investments on track.

Transparency and accountability

Shift reporting from 'account balance' to progress in retirement income terms.

Access and inclusion

Make participation the default. Use auto-enroll, improve portability and simplify digital enrollment.

Embed advice and engagement

Combine digital and human support to provide guidance, scenario tools and access to advice.

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