People in mainland China and Taiwan are conservative in their retirement financing options while those in Hong Kong are more inclined towards risk taking, according to a survey carried out by J.P. Morgan Asset Management on investors' approach to retirement.
43% of investors polled in mainland China and 54% of those in Taiwan favour pension savings. The top investment vehicles for people in mainland China and Taiwan are insurance, real estate and fixed deposits. In Hong Kong, 94% of those polled selected stock investments as the main vehicle to build up their retirement funds.
Meanwhile, data from the Taiwan's Ministry of Health and Welfare show that among Taiwanese aged over 65, an average of one in 5.7 people need long term care. Also, an elderly person spends an average of 7.3 years in bed before he or she passes away. However, long term care insurance in Taiwan is not widely bought.
The Taiwan Financial Services Roundtable, which was founded by local financial associations and related organisations, said recently that to encourage the public to buy long term care insurance policies, the government should consider allowing consumers to an income tax deduction of up to NT$24,000 (US$794) of their insurance expenses each year.