The coronavirus pandemic is weighing on Asia’s pension systems, raising concerns about whether some will be up to the task of allowing future retirees to live comfortably.

Read also How are Japanese corporate funds adapting to global economic challenges

Across the region, employers hit by lockdowns and slower economic activity are struggling to keep pension funds topped up. Governments have responded by scaling back contribution requirements.

Read also Highlights of China’s elderly care over past five years

“The economic recession caused by the global health crisis has led to reduced pension contributions, lower investment returns and higher government debt in most countries,” said David Knox, senior partner at Mercer, a U.S. human resources consultancy. “Inevitably, this will impact future pensions, meaning some people will have to work longer while others will have to settle for a lower standard of living in retirement.”

Read also Saudi Arabia pension system shows positive signs in 2020

In Malaysia, employee contributions to the federal Employees’ Provident Fund have been cut to 7% from 11% of salaries, creating an expected shortfall of about $9.4 billion, according to Mercer’s research.

In Thailand, social security contributions have been temporarily reduced to 2% from 5% for both employees and employers from September through November, while in Singapore a planned increase in Central Provident Fund contribution rates for older workers was deferred by a year to January 2022.

Read more @Nikkei Asia