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<\/a><\/p>\nA key recommendation included raising the state pension age as life expectancy continues to increase in the nation. Thailand was in the bottom slot and should introduce a minimum level of mandatory retirement savings and increase support for the poorest, the report said.<\/p>\n
The study comes as policy makers grapple with more people entering retirement, living longer and needing a steady flow of income on which to survive. Almost one-fifth of the world\u2019s population is forecast to be of retirement age by 2070, up from about 9% this year, United Nations data show.<\/p>\n
\u201cSystems around the world are facing unprecedented life expectancy and rising pressure on public resources to support the health and welfare of older citizens,\u201d said David Knox, the report\u2019s author and senior partner at Mercer.<\/p>\n
\u201cIt\u2019s imperative that policy makers reflect on the strengths and weaknesses of their systems to ensure stronger long-term outcomes for the retirees of the future.\u201d<\/p>\n
While retirement systems in many Asian nations improved from last year the report found they lack transparency and workers aren\u2019t saving enough for retirement compared to their global peers.<\/p>\n
The study also explores the so-called wealth effect — the tendency for spending to increase with rising wealth. Mercer found that as pension assets increase, people feel wealthier and are more likely to borrow.<\/p>\n
\u201cSuch an outcome is not a bad thing,\u201d Knox said in the report. \u201cThe assurance of future income from existing pension fund assets enables households to improve both their current and future living standards.\u201d<\/p>\n
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