A survey of Taiwanese adults aged 50-64 has found that they think they will need savings of NT$8.37 million (US$275,245) on average to retire, or NT$1.12 million more than they would be likely to receive from government-run retirement programs.
The survey, conducted by the Hondao Senior Citizen’s Welfare Foundation late last year and presented at a press conference Tuesday, found that 84 percent of respondents felt they had not saved enough to meet their long-term medical and care needs while also having funds in reserve in case of an emergency.
When asked how much they would need for those purposes, 30 percent of respondents said they would need over NT$10 million and roughly another 50 percent said at least NT$5 million, the foundation said, adding that this worked out to an average of NT$8.37 million.
At the press conference, the foundation’s deputy chairperson, Lin Po-hua (???), said that based on the NT$8.37 million figure and Taiwan’s current life expectancy of 81 years, a person who retired at age 65 would have NT$43,594 per month to live on.
Data from the Labor Insurance Bureau showed, however, that in 2022 the average retiree received monthly labor pension and labor insurance annuity payments of only NT$19,573 and NT$18,209, respectively, or a combined NT$37,782, Lin said.
This meant that government-backed retirement benefits fall short of people’s desired retirement savings amount by NT$1.12 million in total, or NT$5,812 per month, he said.
Meanwhile, the survey also asked respondents about their views on a range of topics related to personal finances and investment.
It found that 43 percent of those surveyed had a low risk profile, but also hoped for high returns on their investments.
Asked where they got their information on financial products, many respondents said they relied on only one or two sources, with the most common being “financial institution representatives,” “friends and family,” and “television advertisements.”
When buying financial products, around 20 percent of those surveyed said they did not bother to read the terms of the contract, while 15 percent said they read the contracts but could not understand them.
Only 23 percent of respondents reported that they read the contracts and fully understood them, according to the survey.
The Hondao Foundation’s survey was conducted via its website and official Facebook and Line groups in November and December of last year. It collected 697 valid responses from adults aged 50 to 64, but no margin of error information was provided.
Source: Focus Taiwan News Channel