The region is responding to declines in retirement finances with sustained boosts to financial education.
As aging societies place increasing strain on retirement finances globally, markets across East Asia and Southeast Asia are taking decisive action through targeted financial literacy and education programs. New data from the 2025 Global Financial Inclusion Index reveals the scale of the challenge—and how some markets are responding.
The demographic pressures are particularly acute in China, where approximately 310 million people (22% of its population) are over age 60. This number is expected to surge to more than 400 million, nearly 30% of the population, by 2035. The impact is evident in the Index’s finances in retirement indicator, where scores declined in 23 markets, with China showing the heaviest decline (-11.6 points) and dropping seven places in the ranking.
This challenge extends across Asia, with all countries in the region seeing declines in retirement finances except for India. Japan, despite maintaining a flat score, dropped one position to second-to-last in this indicator. However, faced with the prospect of widespread financial insecurity in retirement, governments are responding with targeted initiatives.
The major economies in East and Southeast Asia are making sustained improvements in their financial literacy levels. China’s score in this indicator jumped 13.8 points, rising eight places to 21st position. Vietnam (+11.8 points), Taiwan (+10.2 points), and Singapore (+6.6 points) all recorded notable increases. Thailand and Hong Kong, while maintaining flat scores in 2025, rank among the highest globally at second and third respectively.
This progress stems from concerted efforts to boost financial education. China climbed four places to 14th in government-provided financial education, while Malaysia rose five positions to 12th. Vietnam, despite a marginal score decline, retained its top ranking in this indicator.
The emphasis on advancing financial literacy is part of a broader move to enhance educational inclusivity across demographic groups. Vietnam (+13.7 points), China (+8.1 points), Indonesia (+7.7 points), and Hong Kong (+2.7 points) all made significant strides in equal access to education. Japan's slight increase was enough to secure first place in the financial education indicator, while Singapore and Thailand also improved their rankings.
Financial education is no longer a peripheral policy—it’s central to economic stability and retirement adequacy.
Martin Lau, head of Hong Kong at Principal Financial Group, notes that these efforts reflect a fundamental shift in policy approach: “Financial education is no longer a peripheral policy—it’s central to economic stability and retirement adequacy. In Hong Kong, and to some extent across East and Southeast Asia, younger generations of workers are notably more retirement-aware, thinking about financial security much earlier than previous generations. This owes much to ongoing financial education initiatives and better access to digital banking services, which enables them to develop their financial knowledge through easier and more regular engagement with their finances.”
The impact is already visible among certain demographics, particularly younger workers who are developing stronger financial awareness earlier in their careers. This progress is attributed to both educational initiatives and increased access to digital banking services, which facilitate regular engagement with personal finances.
Looking ahead, the key challenge will be ensuring these initiatives effectively reach both younger and older demographics, helping current retirees navigate immediate needs while empowering younger generations to make informed decisions about their financial future. These programs could provide valuable lessons for other regions facing similar demographic challenges.
