As life expectancy rises across Asia, more people are placing a premium on living meaningfully and independently in retirement—yet many still face challenges in achieving financial security, according to a report.
The 2025 Financial Resilience and Longevity Report for Asia, released by Manulife Wealth & Asset Management (Manulife WAM), which surveyed respondents in Hong Kong, Malaysia, Indonesia and the Philippines, found that most Asians prioritize quality of life over longevity itself.
Fewer than one in ten said they wanted to live longer regardless of circumstances, while half emphasized the importance of a purposeful life, and over one-third expressed a desire not to become a burden on others.
Financial well-being closely linked to health
The study also revealed a strong connection between financial security and overall wellbeing. About 75% of respondents across the four markets said their financial health affects their physical and mental health, while 85% reported that it shapes their mental state during retirement.
“People across Asia want to enjoy their extended lifespans with dignity, purpose, and freedom,” Calvin Chiu, Head of Asia Retirement, Manulife and Chief Executive Officer, Manulife Investment Management Hong Kong said.
“That requires a shift in mindset—from saving for retirement to planning for longevity,” he added.
Confidence gap in retirement preparedness
Despite awareness of the importance of financial planning, less than half of respondents across Asia feel they will have enough funds for retirement. Confidence varies by market, from 48% in Hong Kong to 77% in Indonesia, with mid-career adults (ages 45–54) being the least optimistic.
The report found that cash continues to dominate the average Asian portfolio, representing roughly half of non-property investments. Fear of capital loss and lack of investment knowledge were cited as reasons for avoiding higher-yielding assets. Property, once a cornerstone of retirement planning, is losing dominance, with only three in 10 respondents considering it a top priority.
“Holding too much cash and relying solely on property can leave people vulnerable to inflation and income shortfalls,” Chiu said.
“Building financial resilience means diversifying across income- generating and inflation-protected assets—and doing so early,” he added.
Professional advice boosts confidence
Respondents who work with financial planners reported higher confidence in retirement preparedness. In Indonesia, 89% of those with a planner expect to have sufficient funds, compared to 63% without one. In Hong Kong, the difference is even wider: 62% versus 29%. Insurance agents and financial planners from insurance companies remain the most common sources of advice, followed by bank relationship managers and independent advisors.
The Philippine perspective
In the Philippines, just over half (52%) of respondents feel financially prepared for the future. The survey also found a shift in investment priorities: 73% now prefer income-generating investments over property (71%), reflecting a growing awareness of diversified retirement planning.
Across all markets and generations, respondents ranked a work-free new chapter as the top retirement priority. This preference is strongest among younger adults (25–34) at 55% and older adults (60+) at 58%, while mid-life respondents (45–59) showed a more balanced approach, with many opting to continue some form of employment.
A call to action
Manulife WAM encourages individuals, employers, and financial planners to rethink traditional retirement strategies. The report recommends a holistic approach that combines early financial planning, diversified investments, and continuous professional guidance to help people thrive in longer retirements.
“Longevity should be a source of optimism, not anxiety,” Chiu said.
“With the right financial habits and guidance, people can turn longer lives into better lives—and that’s the vision driving our work at Manulife,” he added.
—With Rosette Adel