Focusing on developing economies in Asia, this paper analyzes how individuals fund their old-age needs and concludes that developing Asia’s old-age funding needs will rise substantially because of population aging between 2025 and 2065.
The paper also finds that labor income will play a smaller role in funding the region’s old-age needs, while public and private transfers will play a larger role. While expanding public transfers will contribute toward old-age economic security, the region must carefully plan such expansion and avoid unsustainable generosity to safeguard the macroeconomic stability that underpinned its rapid economic growth and development.