Most Taiwanese expect to retire at the age of 60 and feel that they need to start saving for retirement at age 38, according to a survey of Taiwanese people's attitude towards wealth by Citibank Taiwan that was carried out by the publication, Business Today.
The survey found that retirement planning, wealth accumulation, dream fulfilment, and children's education rank as one of the most important issues for Taiwanese people to have a wealthy life, reported The China Post. The survey, conducted from 12-21 June 12 this year, polled 1,851 people over the age of 25 with personal financial independence.
Highlights of the survey results include:
- Respondents said that for a rich and happy life, the first thing to do is to enjoy a comfortable and happy retirement (35%), accumulate more wealth and achieve financial freedom (34%), fulfil their dreams (13%), provide their children with the best education (11%), take part in volunteer work (5%), and transfer their assets or choose a successor for their business (1%).
- The ideal retirement savings for the affluent is NT$26.45 million (US$871,000), and for the general public, NT$17.24 million. The average pension gap for the wealthy is NT$10.99 million, and for ordinary people, NT$11.27 million.
- Asked about sources of retirement income, investment gains from real estate, stocks and bonds accounted for 69%, followed by savings (50%), personal insurance (34%), labour insurance, labour pension, and national pension insurance (31%), as well as financial help from adult children (1%).
- The Taiwanese think that the cost of raising a child from birth through college is at least NT$7.5 million. The average cost of raising a child for the affluent is NT$9.22 million, and for ordinary people, NT$7.5 million. The wealthy is facing an education funding gap of NT$4.61 million, and the general public, NT$5.11 million.
- Talking of action needed to create a rich and happy life, the rich (85%) and the general public (80%) agreed that they should start an investment plan early. In terms of wealth management, the affluent (84%) and ordinary people (71%) also agree to start with asset allocation strategies coupled with risk management.
- Asked about their preferred wealth management modes, the affluent named their preferences in the same order as the general public, which is: tailor-made asset allocation plans (61%), goal-oriented advisory tools (53%), diversified investment portfolios (48%), professional expertise which bank financial advisors should have (33%), banks with global thinking (25%), and leading wealth management banking brands (20%).