Crystal Hsu / Staff Reporter
Taiwanese need approximately NT$15 million (approximately US$466,200) to maintain a comfortable life after retirement, but nearly 80% said they lacked the funds to achieve that goal. This was revealed in a study released by CTBC Bank (China Trust Bank) on Tuesday.
As Taiwan enters a “super-aging society” next year, with 20% of the population aged 65 and over, the importance of retirement planning is rapidly increasing, said Yang Shuhui, Head of Retail Banking at CTBC. said.
She said medical and technological advances have increased life expectancy in Taiwan, and the issue should not be taken lightly.
Photo: An Rong Xu, Bloomberg
Government data suggests that Taiwan’s current average life expectancy is 81.21 years, an increase of 0.21% from last year, and a similar growth rate over the past three years.
According to the survey, most respondents said they needed an estimated NT$14.27 million to maintain a decent living after retirement, while 20% said they needed NT$25 million.
According to the report, 87% of respondents said they use investment tools to manage their wealth, and more than 50% reported investment returns of 5% or more in the past three years.
Still, 53% describe market movements as “avoidant” and are concerned about long-term investing.
According to the report, stocks were the most popular investment vehicle among respondents at 66.9%, followed by term deposits at 62.9% and exchange-traded funds (ETFs) at 41.9%.
ETFs overtook savings-related insurance contracts to become the third most popular investment vehicle, with 55% of respondents saying they prefer investment products that promise regular, stable cash flow.
CTBC Bank said this has contributed to the rapid increase in the size of local ETFs that distribute cash dividends on a monthly or quarterly basis, with more Taiwanese relying on passive income from ETFs to sustain their retirement. He added that
Despite this, 34.9% said they did not have a designated retirement account, and 34.8% worried that there would be no one to care for their children or sick family members after their death. 16.1% said they were worried about not knowing who had whose account. And the research reveals how they inherit their wealth.
According to the report, when it comes to what people want after retirement, health is the most valued at 81%, followed by world travel at 55% and developing hobbies and habits at 23%.
CTBC Bank conducted the poll among 1,200 people aged 30 and over from July 26 to August 15.
