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An aging population and a decreased reliance on the support of their children—along with the timely enforcement of the New Pension Scheme—have Taiwanese consumers eager to take charge of their own retirement. Yet their preparation is not always adequate to meet their retirement goals—a risky situation, particularly in today's economic climate.
Ready to Take Charge
Prudential's Retirement Readiness Research shows that unlike consumers in many other countries, 84% of Taiwanese consumers indicate that they are comfortable taking more control of their retirement investments from the government. In fact, they expect to fund more than half of their retirement from personal savings. Moreover, as families become more decentralized and children move to explore career options, few Taiwanese consumers (1%) are counting on family support post-retirement.
A Need to Do More
The Prudential study indicates that the average planned retirement age among Taiwanese consumers is just 56, leaving two or even three decades for which they'll need retirement income. However, more than 50% of survey respondents have either not yet started or just started saving for their retirement. As a result, 48% feel that they are behind schedule in their savings progress, and less than one in five are very confident that they will not run out of money in retirement.
It is apparent that many Taiwanese consumers question their own investment strategies and decisions. In fact, the study shows that three out of four investors have earned less from their retirement investments than what they expected to achieve. For their retirement expectations to become a reality, they recognize the need to make changes to the way they prepare.
Professional Advice Can Bridge the Gap
Only 26% of Taiwanese consumers presently use a financial advisor as a primary retirement planning partner, yet 88% of respondents wished a retirement expert could just tell them what to do. As they seek help on issues such as how to better invest and save, how to find guidance and resources, and what products are best suited to their individual retirement needs, it is clear that professional guidance can help Taiwanese consumers take control of their retirement planning.
Read more about Retirement Issues and Perspectives.
Learn more about Individual Retirement Planning.
Source: Retirement Readiness in Taiwan. October 2007.
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