Allianz Global Investors has published a major study of pension markets in nine economies in the Asia-Pacific region. It says pension reforms will lead to a dramatic asset growth. The success of the defined contribution plans is vital to cope with demographic problems.
 | Asia-Pacific Pensions 2007: Systems and Markets(click on the image to download the study) |
According to the study "Asia-Pacific Pensions 2007: Systems and Markets", the ratio of elderly in most Asia-Pacific markets will worsen between now and 2050, due to falling fertility rates and increasing longevity.
In response, governments are seeking to formalize and extend pensions coverage through reformed state schemes and new private plans. Clearly, the dynamics of reform vary considerably between the wealthier markets with developed pensions systems such as Australia or Japan and the developing markets such as China, India, or Taiwan. One major trend which is evident across the region, however, is the growth of defined contribution (DC) pension plans.
Allianz Global Investors' new study expects pension assets in the region to increase tremendously, raising assets under management to over 3 billion euros by 2015, from about 1.4 billion in 2006. This presents major opportunities to financial institutions active across the region. Outsourcing of asset management on the part of public pension funds is on the increase.
Synergy of the global expertise of professional asset managers with the local expertise will be decisive in delivering financial security to many of Asia's future pensioners.
Read the study for more and in-depth information.
