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Investors forecast post-retirement spending of NT$25,000 a month: poll

Investors forecast post-retirement spending of NT$25,000 a month: poll

Taipei, April 15 (CNA) Investors in China and Taiwan have estimated that they would spend NT$25,000 (US$754) a month on average when they retire, according to a survey released here Wednesday. The poll, conducted by J.P. Morgan Asset Management, found that Chinese investors have a higher forecast than their Taiwanese counterparts for retirement spending and are also more aggressive in drafting investment plans. Jerry Chu (???), executive director of J.P. Morgan Asset Management, said at a press conference that 40 percent of Taiwanese investors believe their best post-retirement investments would be fix-termed deposits, real estate, stocks and financial commodities that carry monthly interest, in that order. On the other hand, 40 percent of Chinese investors chose stocks, followed by mutual funds, Chu said. The survey interviewed 1,069 experienced Taiwanese investors and 1,243 investors in Beijing, Shanghai and Guangzhou. The poll, conducted by phone and in person, asked the respondents to estimate their average monthly spending after retirement. The Taiwanese investors said they would need NT$20,000 on average, while their Chinese counterparts estimated NT$30,000. In a breakdown of the poll, 32 percent of the Taiwanese respondents said they would need between NT$10,000 and NT$20,000, and 70 percent said they would require no more than NT$30,000. Among the Chinese investors, one third projected NT$20,000-NT$30,000, and 25 percent estimated NT$30,000-NT$40,000. Given that Taiwan's gross domestic product per capita stands at US$22,000 - which works out to a month income of NT$56,000 - Taiwanese investors' estimate of NT$20,000 is only 40 percent of their current income and they would have to live frugally, Chu said. Meanwhile, 27 percent of Taiwanese investors think they would have to work 26-30 years before retiring, while 19 percent estimate more than 40 years. In light of the fact that Taiwanese begin their careers at age 25 on average, Chu said, most of them are likely to retire between 55 and 65, which means they should prepare for many years of work. (By Tien Yu-pin and Maubo Chang)


Updated : 2021-09-19 16:17 GMT+08:00