Funding Developing Asia’s Old-Age Needs: Challenges and Opportunities
Overview
This paper examines how individuals fund their old-age needs across different economies, with a focus on developing Asia. The analysis predicts a significant increase in the region's old-age funding needs due to population aging between 2025 and 2065.
Key Findings
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Role of Labor Income:
- Labor income will play a smaller role in funding the region's old-age needs.
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Role of Transfers:
- Public and private transfers will become more important in funding old-age needs.
- Expanding public transfers can enhance old-age economic security but requires careful planning to avoid unsustainable generosity.
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Macroeconomic Stability:
- The region must balance the expansion of public transfers to ensure macroeconomic stability, which has been crucial for rapid economic growth and development.
About the Asian Development Bank (ADB)
- Mission: Achieve a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while continuing efforts to eradicate extreme poverty.
- Establishment: Founded in 1966, with 68 members, 49 from the region.
- Main Instruments:
- Policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.
Authors
- Andrew Mason: Emeritus professor of economics at the University of Hawaii at Manoa.
- Donghyun Park: Economic advisor at the Asian Development Bank.
- Gemma Estrada: Senior economics officer at the Economic Research and Regional Cooperation Department, Asian Development Bank.
Additional Notes
- The paper is published under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO).
- It is part of the ADB Economics Working Paper Series, No. 742, published in September 2024.
This summary provides a clear overview of the key points discussed in the paper, focusing on the challenges and opportunities related to funding old-age needs in developing Asia.
