Tai­wanese plan too late for re­tire­ment: sur­vey

The China Post - - LOCAL -

Tai­wanese on av­er­age wait un­til they are 36.6 years old to be­gin to plan­ning for re­tire­ment, and 22 per­cent do not start un­til in their 40s, a sur­vey by an as­set man­age­ment com­pany re­vealed Wed­nes­day.

“That’s far too late,” said An­drew Wang, chief in­vest­ment of­fi­cer of Man­ulife As­set Man­age­ment.

Wang said that although peo­ple are likely to be­come more fi­nan­cially sta­ble later in life, their re­tire­ment plans should not con­sist solely of wait­ing for a pen­sion.

In­stead, peo­ple should en­gage in long-term fi­nan­cial plan­ning, such as in­vest­ment in mu­tual funds, eq­ui­ties or other in­vest­ment tools, to en­sure mul­ti­ple sources of in­come af­ter re­tire­ment, he sug­gested.

The sur­vey by Man­ulife As­set Man­age­ment found that 66 per­cent of in­vestors save money for their re­tire­ment and al­lo­cate 20 per­cent of their cur­rent in­come for that pur­pose.

Only 30 per­cent of Tai­wanese have any re­tire­ment plans apart from ob­tain­ing a pen­sion from the gov­ern­ment fund, ac­cord­ing to the poll.

Over­all, more than two thirds are con­fi­dent about their post-re­tire­ment fi­nan­cial sit­u­a­tion, think­ing that their sav­ings will be enough to sup­port them, the poll found.

The sur­vey also found that Tai­wanese are ex­pect­ing 20 per­cent of their in­come to come from full-time or part-time jobs as they reach the age when they will be el­i­gi­ble for re­tire­ment.

Tai­wan’s la­bor force has con­tin­ued to age but work­ers are de­lay­ing re­tire­ment be­cause they need to make more money for re­tire­ment.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.