Survey ranks Taiwan 4th in regional retirement readiness

2016/01/13

Taiwan ranks fourth among six Asian countries and territories when it comes to the population’s expectations and preparedness for retirement, according to a recently released international survey.

Jointly conducted in November 2015 by Singapore-based DBS Bank and the Indonesian branch of Canada-based Manufacturers Life Insurance Co., the first-time study involved 6,068 respondents aged 40 to 60 in Taiwan, Hong Kong, India, Indonesia, Singapore and mainland China.

The online survey used the Retirement Wellness Index to assess the level of respondent readiness across the areas of health, wealth and social aspects.

On a scale of 0 to 100, Taiwan’s score of 47 was ahead of Singapore at 46 and Hong Kong at 39, but behind Indonesia at 72, India at 69 and mainland China at 61. The average score of the six economies was 56 points.

In the wealth subindex, Taiwan’s score of 35 was ahead of only Hong Kong at 27 and tied with Singapore. In addition, while respondents plan to retire at 61.5 years old, 38 percent said they do not expect to fully withdraw from the workplace.

On average, Taiwan respondents begin retirement planning at 41 and put aside 29 percent of their monthly income, or NT$19,761 (US$587), in preparation, but expect to spend NT$29,221 per month post retirement. Only 30 percent seek professional advice in this regard, the lowest among the six countries and territories.

Nearly 63 percent of locals expressed concern about their post-retirement financial conditions, the highest among the six economies, and only 18 percent said they have saved enough for 20 years after exiting the job market.

Regarding health concerns, Taiwan’s score of 54 was also ahead of only Hong Kong at 47 and tied with Singapore. A total of 40 percent believe they will not be able to afford medical expenses in their senior years.

In terms of social aspects, traveling and participating in community activities top the to-do list for Taiwan respondents. The country’s score of 50 was ahead of Singapore at 49 and Hong Kong at 41.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=241111&ctNode=2194&mp=9)