Taiwanese plan too late for retirement: survey
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.