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Taiwan residents not financially ready for retirement

Staff Writer |
The majority of middle-aged Taiwan residents are not financially ready for life after retirement, according to a survey.

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The index gauging preparation and confidence in life after retirement among Taiwan residents stood at 52.5 this year, slightly higher than that of last year but still below the pass line of 60, according to a survey jointly conducted by CTBC Bank and Global Views magazine.

Only 54 percent of the 2,223 Taiwan residents above 40 years old surveyed have clear family wealth management plans while 36 percent are not worried about their post-retirement life.

Retirees in Taiwan receive only about 48.4 percent of their pre-retirement income, while the standard income replacement rate recommended by the World Bank is about 70 percent.

Most Taiwan residents start to plan for their retirement at around the age of 40, which might be too late considering their average life expectancy of 80.2 years old, according to Amy Yang, head of the Retail Banking Group at CTBC Bank.

Yang suggested that Taiwan residents should start planning for their retirement earlier and have a more diverse asset portfolio to ensure they can have sufficient money after retirement.

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