Taipei, People should accumulate at least NT$16.17 million (US$526,000) in savings in Taiwan before they dare think of retiring, the results of a job bank survey released Monday show.
When asked how much savings they would need before applying for retirement, 45 percent of the respondents replied that such savings should amount to the level of over NT$10 million, according to the 1111 Job Bank survey on the retirement pressure shouldered by local employees.
After making calculations, the job bank concluded that NT$16.17 million was the average sum the survey respondents regarded as a safe baseline for retirement.
Daniel Lee (???), 1111 Job Bank president in charge of public affairs and career development, cited a lifespan chart released by the Ministry of the Interior in 2016 as saying that the average lifespan of Taiwanese people was 80 years -- 76.81 years for men and 83.42 years for women.
The survey found that most employees in the service sector set their retirement age at 43, while the average age of those working in the education/public sector to apply for retirement is 61.
Assuming a 25-year retirement based on an average retirement age of 55, one needs at least NT$6.5 million to cover living expenses, calculated on basis of an average monthly expense of NT$21,667, Lee said.
However, because in many cases a person still has to feed an average 2.33 people after retirement, the living cost for a 25-year retirement easily exceeds NT$15 million, Lee said.
Citing Directorate General of Budget, Accounting and Statistics data, which indicates that regular earnings in Taiwan reached NT$39,953 per person per month in 2017, Lee said it is all the more difficult for employees to accumulate enough savings before retirement.
Lee suggested that young employees should start to make financial plans for retirement as early as possible so that they can lessen the pressure amid the approach of their retirement.
The survey found that more than 83 percent of the respondents are worried their pensions will not be enough for their retirement, while nearly 90 percent plan to explore other income sources after retirement.
The survey was conducted Aug. 13-24 among 1111 Job Bank members via online questionnaires. A total of 1,116 valid samples were collected, with a 95 percent confidence level. The margin of error was 2.93 percentage points.
Source: Focus Taiwan News Channel