Retirement planning is the one financial goal to which Taiwanese respondents (23%) say they allocate the highest monthly contribution, while 15 percent allocate the most to a first-time property purchase, and 10 percent invest allocate the highest amounts to health-related issues on a monthly basis.
According to “Population Projections for R.O.C. (Taiwan): 2012~2060” released by Council for Economic Planning and Development in 2012, Taiwan is now an aging society and will become an “aged” society by 2018. Saving for retirement, as a result, is the first priority for Taiwanese consumers.
In order to achieve their retirement goals, Taiwanese respondents use local currency as the primary investment strategy to fund this target (58%), followed by whole life insurance (55%), company pension (46%) and saving plans (40%).
Compared to other countries, Taiwanese consumers are relatively heavily relying on various insurance programs to fund their future retirements. Investing in private pension plans and government retirement schemes rank higher elsewhere around the world.
More than one-third (35%) of Taiwanese respondents believe they will need at least 20 years to save enough for retirement, while 27 percent of global respondents believe they can achieve sufficient retirement savings in fewer than 20 years.
This shows the Taiwanese are less confident about their ability to prepare their future retirement funds.