Reported 12 months ago
Following the onslaught of post-pandemic inflation, retirement preparation costs are also on the rise! Taiwan’s largest fund platform, Jufu Tong, released a survey showing that almost sixty percent of Taiwanese believe that preparing for retirement is the most important financial goal. However, the average expected preparation fund is 14.03 million NT dollars, an increase of 3 million from the 2020 survey. The confidence index has decreased by 4.7 percentage points to 35.3%, and the retirement age has been extended to 62.5 years. Jufu Tong, in collaboration with thisweek magazine, expanded the scale of the survey due to changes in the post-pandemic economic environment. Within their projects, 'Haixiang Retire' and 'Good Retirement,' approximately 100,000 Taiwanese individuals have been guided to independently save retirement funds, bringing the total scale of Jufu Tong to billions of NT dollars. 'Good Retirement' is the country's largest self-selecting retirement financial plan and has always been operated without a profit motive, providing suitable funds for long-term financial planning through expert selection, lifelong zero transaction fees, and low management fee mechanisms. Lin Binghui, the Chairman of Jufu Tong and Taiwan Depository & Clearing Corporation, states that more than 50% of Jufu Tong's customers have complete retirement plans in progress, significantly higher than the general public's 26%; 82.7% of customers save for retirement through regular or irregular scheduled investments, also significantly higher than the general population's 20.5%. However, still, 60% of the general public has not started retirement planning or are still researching, indicating the need for Jufu Tong to further work towards helping more people benefit from the retirement preparation platform and fulfilling the responsibilities of financial inclusion. Wang Liling, Dean of Sustainable Finance and Impact Investment School, believes that 'regular, long-term investment' is the best method for retirement preparation. Despite many people hoping to retire before the age of 65, few begin retirement savings, leading to only 11-15 years on average for preparation, unable to harness the power of compound interest. In fact, if one begins with monthly fixed-amount investments of 5,000 to 8,000 NT dollars from the age of 30-40, with an average annual return rate of 4 to 6%, by the age of 65, an accumulated retirement fund of at least 6 to 8 million NT dollars can be achieved.
Source: YAHOO