Taiwan’s workforce faces a retirement crisis, with 82% of prime-age workers and pre-retirees fearing their savings will fall short. Healthcare costs, beyond social insurance, have emerged as the main concern for the majority.
Rising Concerns Over Insufficient Savings
A new study has revealed that a significant portion of Taiwan’s young working demographic is not adequately prepared for retirement. According to a survey of 750 people conducted in November 2024, 82% of prime-age workers and pre-retirees expect to depend on employment income during their retirement. This indicates serious concerns about the adequacy of their existing savings.
Need for Innovative Retirement Solutions
Jae Ho, CEO of RGA Taiwan, emphasized that the findings highlight the urgent need for new retirement solutions that address income security and health-related financial risks. The report, produced by the Society of Actuaries (SOA) Research Institute in collaboration with Reinsurance Group of America (RGA), suggests that the gaps in retirement preparedness are particularly significant among younger workers.
Growing Demand for Insurance Products
The report’s findings underline a rising demand for insurance products that offer guaranteed income and health-related benefits. While retirees tend to plan more actively for retirement—61% of them calculated their retirement assets—only 49% of prime-age workers aged 30 to 45 have done so. One of the most pressing concerns for the respondents is healthcare costs, which are not fully covered by social insurance. This issue was highlighted by 96% of the survey participants.
Interest in Health-Related Retirement Products
Given the growing concern over healthcare expenses, there is strong interest in retirement products with health-related benefits, such as annuities that provide increased payments in the event of critical illness. Additionally, tax-deferred annuities are seeing a surge in popularity, with 89% of respondents open to considering them as part of their retirement strategy. Overall, 74% of the respondents expressed a willingness to convert part of their retirement savings into lifetime-guaranteed annuities.
Generational Divide and the Need for Financial Education
The study highlights a generational divide in retirement planning and stresses the need for early financial education. Among the most important product features for consumers, guaranteed income (60%) and guaranteed returns (58%) were prioritized. As digital engagement with financial tools continues to grow, insurers are urged to offer tailored products that strike a balance between income stability and health coverage.
Mobile App Usage for Retirement Planning on the Rise
The report also noted a significant increase in mobile app usage for retirement planning, with usage rising from 9% in 2018 to 19% in 2024. This shift suggests that younger workers are becoming more engaged with digital tools to manage their financial future.
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