Hong Kong insurer AIA’s investment chief said retirement savings are important to ensure sustainability of a pension system but warned that a “paradox of thrift” could be a drag on an economy.
He was referring to an economic theory which holds that a collective increase in individual savings may lead to a decline in economic activity.
“So, the key is to mobilise these assets and savings and make them productive. This is because if the capital is not productive, then it is going to be a drag to the economy,” Mark Konyn, chief investment officer of AIA, said during a panel session at the Investment Management Association of Singapore’s 2025 conference on April 23.
He also said global pension systems must promote financial education and responsibility to pension fund members.
“They also do not talk about long-term savings and how to allocate the savings,” Konyn said. “So, we’ve got a little more work to do in terms of reaching out and making people understand.”
