Seven in 10 Asians forced to work past retirement: Sun Life

Nearly two-thirds of those working late cite the urgent need for daily expense income.

Asia’s widening retirement gap is creating both risks and opportunities for insurers, as more people work beyond retirement age due to financial pressure, according to Sun Life’s latest regional retirement survey.

Sun Life’s Retirement Reimagined: Asia’s Retirement Divide survey found that 69% of respondents expect to continue working beyond retirement age. 

Whilst some choose to do so for purpose or wellbeing, nearly two-thirds, or 62%, say they need additional income to meet daily expenses and secure their long-term finances. 

This highlights gaps in retirement savings and protection, areas where insurers play a central role.

Asia is home to around 60% of the world’s population aged over 60, a figure expected to double to 1.3 billion within the next 25 years.

As longevity increases, insurers face rising demand for retirement income products, health coverage and long-term financial planning solutions.

The survey points to two distinct customer segments. One group is financially prepared and able to delay retirement by choice, often for lifestyle reasons. 

Another group postpones retirement because it cannot afford to stop working. 

Amongst those who delayed retirement due to necessity, 52% said they needed more time to save. This contrast underscores uneven access to insurance and retirement planning across the region.

The findings also raise concerns for insurers about how customers are planning for retirement. 

Use of generative AI tools for financial decisions nearly doubled to 22%, whilst reliance on banks and independent financial advisers fell to 35% and 34%, respectively, down from 43% and 41% in 2024. 

This shift suggests growing self-directed planning, increasing the risk of underinsurance or unsuitable retirement strategies.

Confidence in retirement readiness remains low. Only 22% of respondents said they feel very confident in their retirement plans, and half either make no plans or only start planning within two years of retirement. 

Financial insecurity is a key driver of pessimism, cited by 45% of non-retirees who are not looking forward to retirement.

Better physical and mental health were the main reasons people became more optimistic about retirement, whilst poor health was cited by 32% of those who retired earlier than planned. 

Sun Life said the results highlight the insurance industry’s role in addressing retirement inequality through advice, protection and income solutions, as ageing populations across Asia place growing pressure on personal savings and public systems.