Majority of Taiwanese not ready for retirement

Inability to pat for post-retirement medical costs prompts investment in insurance

Majority of Taiwanese not ready for retirement

Insurance News

By Gabriel Olano

Taiwan registered a score of 52.5 in the retirement preparedness index, as revealed by a survey by financial services group CTBC. The score suggests that many Taiwanese are unprepared for retirement.

This year’s score is virtually unchanged from last year’s score of 52.

The index gauges the respondents’ level of confidence in getting to live their ideal retirement life, financial readiness for retirement and satisfaction with retirement plans, according to a report by Focus Taiwan. The survey showed that 60% of respondents already have retirement plans in place, while the remaining 40% have yet to make plans.

According to the data, those preparing for retirement saved an average of NTD39,708 (US$1,304) per month, which is a little bit higher than the average government pension for retirees at NTD30,811 (US$1,012). Most respondents began saving for retirement at age 40, with 30.4% choosing to invest in insurance.

Insurance is a relevant investment, as respondents’ top concern was not having sufficient money to pay for post-retirement medical bills. Eight in ten respondents that invested in medical insurance are preparing for major illnesses such as cancer, as well as regular medical treatment. Another 36% invested in long-term care insurance.

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