Private sector can ‘leverage’ gaps in government retirement systems
Across Asia-Pacific there is the potential for private market providers to complement and fill gaps that exist from government-sponsored retirement systems and employer-sponsored pension arrangements, according to the latest research by Milliman Inc, a premier global consulting and actuarial firm.
The report is based on a survey of over 100 insurance companies and financial institutions across eight countries.
Richard Holloway, managing director for Milliman's Southeast Asia and India life consulting practice, said that with this report “we’re able to gain valuable insight into opportunities that may exist, on a country-by-country basis, and offer perspectives on ways to capitalise”.
"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. 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," said Milliman Australia practice leader Wade Matterson.
The vast majority of respondents feel their national retirement systems' provisions are inadequate – even those traditionally considered to have more advanced systems such as Singapore and Australia.
Regarding the most important features in a retirement income product, respondents feel consumers would value some type of guarantee, either income or capital protection, with simplicity being a consistent third across most countries.
When it comes to financial advice, over 60 per cent of participants felt financial advice was needed but 63 per cent cited cost as the primary impediment for consumers.
