Over 60 percent of Taiwanese worry about post-retirement financial security

People should retain 60 percent of their income to ensure comfortable retirement

(Pixabay photo)

(Pixabay photo)

TAIPEI (Taiwan News) – More than 60 percent of Taiwanese lack confidence about their financial security during retirement, according to a survey conducted by asset management company Schroders.

The poll finds that 64.1 percent of Taiwanese workers believe it is their own responsibility to prepare a fund to support themselves after they retire. In addition, as many as 57.4 percent of respondents have started investing in order to live a comfortable life in their later years, reports the Liberty Times.

However, 63.8 percent of participants in the research said they are not convinced they would be able to earn 60 percent of their current income after retirement. This fear suggests they may not be satisfied with their standard of living in later years.

Schroders advises salary workers to contribute 12 to 15 percent of their monthly salary to a pension fund over the four decades of their career in order to achieve an income replacement ratio of at least 60 percent that lasts for 30 years after retiring. Also, the rate of return for their investment portfolio must reach 4 to 5 percent annually.

The poll targeted salary earners aged 25 to 55 in Taiwan’s 22 municipalities, collecting 1,000 samples between June 21 and 28. It had a confidence level of 95 percent and a margin of error of plus or minus 3.1 percentage points.