This paper examines financial preparedness for retirement in the People’s Republic of China (PRC), India, Japan, the Republic of Korea, and the United States, and highlights policy implications.
The authors find that people near retirement in the United States (US) have the most wealth, while those in the People’s Republic of China (PRC), India, and the Republic of Korea show higher financial self-reliance. Japan leads in consumption-based preparedness, with people expected to maintain their pre-retirement consumption. Key determinants of preparedness include education and risky asset holdings, suggesting that policies promoting financial literacy and market development could significantly improve older people’s financial independence.