Most people have only vague plans for funding their old age

Retirement plans need to be devised as early as possible given increasing longevity and declining fertility rates, but most people are unclear as to how much money they should set aside for their old age, according to a recent survey released by the Hongkong and Shanghai Banking Corp (HSBC).

The global survey, which interviewed 11,500 people in 10 countries, showed that 63 percent of respondents had started making preparations for retirement, but most did not know who to turn to for retirement planning, or whether their current planning would enable them to realize their retirement dreams, said Martin Spurling, head of personal financial services with HSBC Taiwan, at a press conference.

The level of attention and preparedness for retirement is highest in North America, with 96 percent of Canadians and 83 percent of Americans having made plans. The lowest ratio was recorded in Japan, at 32 percent.

Spurling noted that with the recent public focus on the new pension scheme in Taiwan, it was a good time for people to plan properly for their future.

The survey found that, compared with 50 years ago, people's attitudes toward aging and retirement have changed, with the majority saying they want to maintain an active life after retirement.

Family, friends, fitness and financial preparedness are universally considered to be the keys to a happy old age, the report said.

"The majority of people in developed countries see retirement as an opportunity for a whole new chapter in their lives," Spurling said, adding that raising public awareness about investing earlier for their old age is essential.

However, fewer than half of the pre-retirees have calculated their retirement needs and potential income sources, according to the survey.

Taiwan's neighbors have widely different approaches to retirement. In Hong Kong, only 33 percent of people have started calculating how much they'll need when they retire, and the figure drops to 7 percent in Japan, one of the most quickly aging nations in the world.

Michelle Maa (馬文玲), senior vice president of trust investment and insurance at HSBC, said key factors to a successful retirement plan include carefully calculating individuals' retirement needs, planning reasonable and feasible investment projects, as well as choosing suitable investment products and a trustworthy financial institution.

Eyeing the market potential, HSBC has launched a retirement planning tool, which assists customers in identifying funding gaps in their retirement plans and finding ways fill them, Maa said.