Apton: How to build a private pension structure and inspire people to actively increase savings?There are no solutions for the four seas, but there are some common tools to use.
Fifty years ago, when asked about the biggest challenge facing Asian countries, no one would list retirement as the most tricky issue in the region.India's expected life expectancy in 1970 was 47 years old.In China, this number is 59.
It is rare to enter the elderly, and if you succeed in your 90s, poverty's threat to you will not be significantly much larger than when you are younger.In rural Asia, most big families are poor, but they still support the oldest family members.
Since then, the Asian century's economic revolution has made billions of people living a wealthy life.Increased income means that urbanization is popular, the family size becomes smaller, and family families decreased in the same generation.Better medical conditions have extended the per capita life expectancy by 20 years.
The improvement of living standards has reduced poverty, but it has not yet made the people of all countries wealthy in the absolute sense.Many Asian countries are facing the risk of not being rich in population.
Asia Development Bank (ADB) estimates that by 2050, Asia will account for about half of the world's population.Today, countless Asians are facing the prospects of lonely and poverty.The World Economic Forum said that in the next 30 years, China's retirement savings gap is expected to increase to $ 119 trillion.
It doesn't work to do nothing.Policy makers must put the perfect retirement plan at a priority.
This is not to say that the Asian government does not understand the timing bomb in this population structure.Many governments have taken substantial actions to try to ensure financial sustainability.
The reality that can be calculated is that the government's security network will lose.Taxes for young people will not be able to provide pensions for the elderly forever.
Traditionally, Asians can save money, but they often make bad investment options, such as saving with cash instead of fully increased wealth, or use compound interest to maintain retirement expenditure needs.In addition, in the face of various short -term and long -term goals, their savings are becoming more and not enough.
Part of the answer is to increase personal responsibility.This will mean re -thinking about the relationship between Asians and pensions, and give them power, so that they make better decisions on their financial conditions.
So, the problems faced by governments of various countries are how to establish a private (voluntary) pension structure and introduce incentive measures to encourage or ask people to increase savings without interfere with the freedom of citizens?There are no solutions for the four seas, but there are some common tools to use.
First of all, policy makers need to clarify their goals and ensure that they are supported by public.Do you provide the minimum living standard for each retirement, or provide a target retirement income?Clarify the problem that private pensions will solve.
Second, use human inertia.Unless the laborer takes the initiative to choose not to participate (few people will do this), they will incorporate them into a proportion of retirement deposit plans by default.Silently promotes people to bear more responsibilities.
Understand how the brain hinders investment decisions, and then you can eliminate this obstacle through a wise system design, such as guiding people to make diverse long -term investment choices.Most people do not have time or professional knowledge to invest by themselves, and people often underestimate the risks they can bear in long -term investment; on the contrary, they bear too much risk within a short period of time.
Third, use data and behavior tools to affect people's behavior.In addition to automatically incorporating people into the savings plan, they must also encourage them to save themselves.Enterprises required to participate in the retirement plan are deposited in accordance with a percentage of employees' deposit amount.This white picked money will encourage people to pay.
Fourth, try to make people have enthusiasm for the deposit plan.Private pensions should provide personalized account reports, showing progress towards a certain goal.Replace the amount of people paid into their income level after retirement.If the retirement savings look like a bank account balance, this money may look easier.Make sure everyone can get the information they need when they need it.
Help people consider the following issues: how can you convert to revenue flow when retirement is reserved for retirement.How to provide guidance on how asset management and insurance products can help achieve a person's income goals.
Fifth, the last point, policy makers need to establish an evaluation process to measure the performance of the private pension system.Discuss the system based on facts.When political pressure strikes, this will help you.
Governments of Asian countries urgently need long -term and coherent pension policies to make it easier for individuals to plan their own savings and actively act.The trade -offs when designing these policies are very complicated.A effective system in a country may fail in another country.To build a better retirement system to help Asia deal with the aging of the population, this must become a top priority.
The author of this article is the Asia -Pacific retirement business strategist of Jimorgan Asset Management (JPMORON Asset Management
Translator/Macos
