Half of consumers (54%) polled in a new study regret not starting to save earlier for retirement, and less than half believe their savings will last throughout their retirement.
On average, consumers in Asia start to save for retirement at the age of 40, according to the study by LIMRA Secure Retirement Institute (LIMRA SRI) and the Society of Actuaries (SOA).
The survey, involving more than 9,000 consumers aged 30-75, across nine markets in Asia, aimed to examine the current state and future opportunity of the retirement market in Asia.
The study also found that more than three quarters of consumers in Asia expect to have a shortfall in retirement savings at age 60. In addition, consumers in Asia underestimate how long they will live in retirement by as much as 24%.
The majority of consumers surveyed say they do not work with a financial professional to help with household decisions. Notably, this is significantly higher in Japan where only one in five households work with a financial professional. Across Asia, the study found 65% of consumers do not have a formal written plan for managing income, assets and expenses during retirement.
The study revealed too that seven in 10 consumers in Asia are interested in converting a portion of their assets into an annuity. The top three features most important to consumers were creating a guaranteed income stream, protecting or preserving their initial investment and guaranteeing returns on their investment.
LIMRA Secure Retirement Institute provides comprehensive, unbiased research and education about all aspects of the retirement industry to improve retirement readiness and promote retirement security.
The SOA, with roots dating back to 1889, is the world’s largest actuarial professional organisation with more than 30,000 actuaries as members. The SOA's vision is for actuaries to be the leading professionals in the measurement and management of risk.