Asia’s retirement divide widens as more workers delay retirement
Asia’s rapidly ageing population is deepening a retirement divide, according to Sun Life’s latest regional survey. While many people expect to work beyond the traditional retirement age by choice, a significant proportion are doing so out of financial necessity, underscoring rising inequality in retirement readiness and the growing urgency of long‑term financial planning.
Asia is home to roughly 60% of the world’s population aged over 60, a number projected to double to 1.3 billion within the next 25 years. This demographic shift, combined with short planning horizons and increasing reliance on self‑directed AI tools, is creating systemic challenges for individuals across the region.
The survey, Retirement Reimagined: Asia’s Retirement Divide, found that 69% of respondents expect to continue working past retirement age. For some, this reflects a desire for purpose, fulfilment, social connection, and mental stimulation. For others, it reflects financial strain, with nearly two‑thirds saying they need additional income to support daily living and long‑term financial security.
David Broom, chief client & distribution officer at Sun Life, noted that the findings reveal “two very different realities.” For those who are financially prepared, working longer is a choice that offers flexibility and freedom. For others, it is driven by financial pressure. Early and holistic planning, he said, determines which path individuals ultimately follow.
The research highlights two distinct groups: “Gold Star Planners,” who are financially ready and able to choose when and how they retire, and “Stalled Starters,” who delay retirement because they cannot afford to stop working. Gold Star Planners tend to view extended work as an aspiration tied to well-being and identity, while Stalled Starters are more likely to postpone retirement due to insufficient savings. Among those who delayed retirement, 52% of Stalled Starters cited the need to save more, compared with Gold Star Planners who more often pointed to staying active or enjoying the social aspects of work.
Christine Yeung, deputy chief executive officer, Life and Health, Sun Life Hong Kong Limited, said that longer lifespans are intensifying uncertainty. Many people remain unsure whether they can retire comfortably, making the industry’s role in providing guidance and solutions more critical than ever.
The survey also identifies generative AI as an emerging risk factor in retirement planning. Use of tools such as ChatGPT and Google Gemini has nearly doubled since the previous survey, rising from 12% to 22%. At the same time, reliance on traditional financial advice has declined. While digital tools offer convenience, the trend highlights a widening financial literacy gap and the risks of self‑directed planning without professional support. Broom cautioned that AI can be a useful starting point but often lacks the nuance required for long‑term financial security.
Financial security remains the strongest driver of optimism about retirement. Among non‑retirees who look forward to their later years, most cite financial stability and freedom as key reasons. Conversely, those who feel pessimistic often point to financial insecurity and concerns about supporting family members. Planning horizons remain short, with half of respondents making little or no preparation until the final two years before retirement, and only 22% expressing strong confidence in their plans.
Many working adults in Asia also face the dual burden of supporting both elderly relatives and young dependents. This “sandwich generation” pressure has led many to scale back lifestyle expectations or postpone retirement. At the same time, attitudes toward retirement are shifting, with 81% of respondents believing retirement should be a personal choice rather than tied to a mandatory age. Younger generations, particularly Gen Z, express stronger support for flexible retirement timing.
Health also plays a decisive role in shaping retirement expectations. Better‑than‑expected physical or mental health has improved retirement outlooks for many, while poor health remains a leading reason for early retirement. Yeung emphasised that health is a form of wealth in later life, influencing both when people retire and the quality of life they enjoy. She added that Sun Life remains committed to helping clients achieve long‑term financial security and healthier lives through comprehensive retirement planning solutions.
HR Asia, Jan 2026
