Kuala Lumpur, 25 October 2024 — Manulife Investment Management globally released its
Financial Resilience and Longevity Report. Findings in Asia, which includes Mainland China, Hong
Kong, Japan, Singapore, Malaysia, Indonesia, Philippines, and Vietnam, revealed that consumers
across the region continue to face financial challenges, despite some markets and demographics
faring better than others. More than two-thirds of people in Asia are confident they will be able to
achieve their top financial goal, which varies across markets and includes having enough saved for
emergencies, managing or maintaining their current lifestyle, and enjoying financial freedom or
security after retirement., but the older generations are in slightly worse shape, with those in their 50s
and 60s less likely to have that confidence than their younger cohorts.
Amid rising life expectancy across Asia, the report explored the need to enhance financial resilience
during working years, potentially allowing individuals to save more for retirement. Longevity trends are
placing pressure on traditional family support systems, healthcare, and financial stability, especially as
changing family structures leave many older adults without the multigenerational support that was
once common.
Calvin Chiu, Head of Asia Retirement, Manulife Investment Management said, “With life
expectancy rising throughout the region, it’s imperative that consumers begin planning earlier and
more comprehensively. The report sheds light on how individuals in different markets can build
financial resilience and prepare for a secure future. The retirement industry, along with governments
and employers, play a critical role in supporting an aging population and helping consumers save and
invest for their extra years of longevity.”
Financial Resilience Varies Across Asia
The report revealed that financial resilience is essential to navigating common obstacles such as
debt, healthcare costs, and emergencies. Consumers across Asia recognized the importance of
saving for retirement, yet many struggle to balance short-term financial needs with long-term goals.
On average only 39% of people across all age groups feel good about their finances today, but an
average of 52% of respondents feel the situation could improve in 10 years’ time. However, top
concerns that may affect their ability to build financial resilience include lack of or insufficient savings,
unexpected medical expenses, and lack of or reduced income.
Other key findings in the Asia region include:
• Rising healthcare costs, inflation, and economic slowdown are top concerns, with over 70% of
consumers in Japan and Singapore concerned with these external factors affecting their
ability to build financial resilience.
• Most people in Asia rely on cash savings and bank deposits (63% – 71%), more than other
financial products, to achieve their financial goals.
• Nearly two-thirds of consumers in Asia feel children are great investments who will provide for
them as they get older. This causes concern for those who do not have family to care for
them as they age, especially those closest to retirement.
Retirement Delays and Family Responsibilities
Similar to global trends, consumers in Asia expect to delay their retirement, especially as they
continue to support both children and aging parents. Changing family dynamics in Asia, including
declining birth rates and fewer multigenerational households, have added pressure to their financial
planning.
Across all age groups, an average of 62% of people in Asia are afraid they will need to postpone their
retirement because of financial responsibility for their family.
That said though, an average of 57% respondents who don’t plan to marry or have children are
concerned about growing old without a spouse or children to look after their financial and well-being
needs. To fill the potential financial gap, an average of 75% of people said they will save as much
money as possible, and only 28% said they will invest in different financial products.
Digital Engagement and Financial Planning
Consumers in Asia are increasingly interested in digital solutions and financial planning tools to help
them manage their finances. Engagement with digital platforms correlates strongly with better
financial outcomes, with those who frequently check their retirement plan or engage with financial
content online more likely to report being in good financial shape.
“Technology is playing a critical role in helping consumers in Asia better understand and manage their
financial futures. For example, in Hong Kong Manulife has piloted a robo-advisory service to
Mandatory Provident Fund (MPF) members. This service is designed to help them better understand
their retirement investment and risk profiles, and make more informed decisions about their MPF
choices,” said Chiu. “By leveraging personalized tools and data-driven insights, we aim to empower
individuals to feel more secure about their financial lives, in partnership with plan sponsors, advisors,
and third-party administrators.”
Financial Priorities and Passive Income Approaches in Asia
While pension schemes provide some level of financial support in retirement, people need to consider
the longevity and inflation factors to assess whether their pensions could last their lifetime. A way to
create a better safety net is through investments that could generate a steady stream of income even
in retirement. For example, they can consider retaining their pension accounts after reaching
retirement age and continue investing in the scheme.
For markets that have pension schemes:
• 35% in Hong Kong expect to rely on the Mandatory Provident Fund (MPF).
• 52% in Singapore expect to rely on the Central Provident Fund (CPF), a mandatory program.
• 36% in Indonesia expect to rely on the Financial Institution Pension Funds (DPLK), a
voluntary program.
Some pension scheme providers offer income funds that regularly distribute dividends, allowing
investors to receive an income every month while remaining invested in dividend-paying funds.
There are also retail funds offering monthly distributions, where investors can gradually invest in suitable
income funds before retirement based on their individual needs and risk tolerance.
Methodology
The Asia findings of the Manulife Financial Resilience and Longevity Report was from the
Manulife Asia Care Survey 2024 that was conducted in January and February 2024 via online self-
completed questionnaires in eight markets, including Mainland China, Hong Kong, Japan, Singapore,
Malaysia, Indonesia, Philippines, and Vietnam. A total of 8,400 people, evenly split between men and
women, aged 25 to 60 years old were surveyed. The 2024 Financial Resilience and Longevity Report
for Asia is available online.
