Asia’s aging population faces a growing retirement divide, according to Sun Life’s latest regional retirement survey. While many expect to work beyond retirement age by choice, a significant number are doing so out of financial necessity, highlighting rising inequality in retirement readiness and the urgent need for long-term planning.

Asia accounts for approximately 60% of the global over-60s population, a figure set to double to 1.3 billion in the next 25 years. This demographic shift, combined with short planning horizons and increasing reliance on self-directed AI tools, poses systemic challenges for individuals across the region.

The survey, titled Retirement Reimagined: Asia’s Retirement Divide, found that a majority of respondents ( 69% ) expect to continue working beyond retirement age. 

For some, this reflects attitudes towards flexibility and wellbeing, as respondents cite purpose and fulfilment ( 49% ), maintaining social connections ( 47% ), and mental stimulation ( 41% ) as reasons to stay in work.

For others, it reflects a financial strain as nearly two thirds ( 62% ) say they need further income to support their daily living and long-term financial security.

David Broom, chief client & distribution officer at Sun Life, says, “What we’re seeing is not a single retirement experience, but two very different realities. For those who are prepared, working longer can be a choice that offers flexibility and freedom. For others, it reflects financial pressure. Planning early, and planning holistically, is what determines which path people are on.”

A tale of two retirements – an option for some, an obligation for others

The research shows two distinct retirement paths across Asia: ‘Gold Star Planners’ who are financially prepared and able to choose when and how they step back from work, and ‘Stalled Starters’ who delay retirement because they cannot afford to stop working.

For Gold Star Planners, continuing to work is an aspiration and a choice defined by purpose, identity, and wellbeing ( 53% ), compared to Stalled Starters ( 43% ). By contrast, 17% of Stalled Starters are unsure whether they will work beyond retirement, compared to 47% among Gold Star Planners who expect to, or continued to do so.

For Stalled Starters who planned to retire later than expected, or had already done so, financial necessity is the most common reason given. Half ( 52% ) say they postponed retirement because they needed to save more.

However, among Gold Star Planners, delayed retirement is more often a choice than a financial necessity. Many point to staying physically or mentally active as a motivating factor ( 53% ), while more than three in 10 cite enjoying the social aspects of work ( 34% ). Extended work among Gold Star Planners reflects agency and optionality; among Stalled Starters, it more often reflects financial pressure.

Christine Yeung, deputy chief executive officer, Life and Health, Sun Life Hong Kong Limited, says, “People are living longer, yet too many remain unsure whether they can afford to retire comfortably. That’s why the industry’s role is more critical than ever: providing the guidance and solutions that turn uncertainty into empowerment, and helping people build a future where retirement is shaped by possibility, not pressure.”

GenAI emerges as a risk factor in retirement planning

As more people turn to generative AI for financial decisions, the research highlights a growing risks of self-directed retirement planning without professional guidance. Use of tools such as ChatGPT and Google Gemini has nearly doubled since last survey, rising from 12% to 22%.

Meanwhile, reliance on traditional advice has declined, with 35% consulting banks and 34% seeking independent financial advisors compared with 43% and 41% respectively in 2024. This shift signals digital convenience and curiosity, but it underscores an increasing financial literacy gap in the retirement space.

Broom says, “AI can be a helpful starting point, but it often lacks the nuance and personalisation needed for long-term financial security. As technology reshapes how people plan for retirement, expert advice remains essential to ensure decisions are informed, balanced, and aligned with individual goals.”

Financial security correlates with retirement optimism

Having financial security is at the heart of optimism about retirement. Among non-retirees who say they are looking forward to their golden years ( 45% ), 59% cite financial security as a reason, followed by stability ( 38% ) and greater freedom ( 27% ). 

In contrast, a lack of security makes people pessimistic – among non-retirees who are not looking forward to retirement ( 55% ), financial insecurity is cited by nearly half ( 45% ), closely followed by the concern of not being able to provide financial support to family ( 43% ).

Planning horizons remain short, with 22% not making any plans before retirement and a further 28% only drawing up plans within two years of leaving full time work. As little as 22% feel very confident in their retirement plans.

Many working people in Asia also face the additional financial strain of supporting elder relatives as well as young dependents — the so-called ‘sandwich generation’. Caring for older and younger family members has led many to downsize their lifestyle expectations ( 36% ) or postpone retirement ( 26% ).

Increasingly, people in Asia want agency over when they leave the workforce — 81% of respondents believe that retirement should be a personal choice rather than a mandatory age. This is reflected at a generational level, with nearly half of Gen Z respondents ( 48% ) agreeing strongly with this compared to 36% of Baby Boomers. Three quarters are in favour of people working beyond their country’s retirement age.