Nearly 80 percent of Taiwanese plan to save the same amount or more in the next six months for precautionary purposes, with retirement topping their list of concerns, a survey by MasterCard Inc showed yesterday.
A total of 78 percent of Taiwanese intend to save equal amounts or more in the coming six months, slightly lower than the 79 percent in China, but higher than the 71 percent in Hong Kong, as Zhonghua minzu (中華民族, “Chinese ethnic group”) assign great importance to savings and display conservative money management strategies throughout Greater China, according to the annual survey.
A majority of 62 percent of Taiwanese cite retirement as the No. 1 reason for saving, and plan to set aside 26 percent of their monthly salaries for the purpose, the survey showed.
In comparison, Chinese and Hong Kong consumers aim to save 29 percent and 23 percent of their monthly wages respectively to meet future needs — all higher than the 19 percent average among Asia-Pacific peers, the survey said.
This year’s findings showed more Taiwanese value quality of life after retirement, compared with the 51 percent saving for retirement last year, the survey said.
Ideally, Taiwanese would like to retire at age 60, the same as in Hong Kong, compared with 55 in China, the survey found.
Investment needs rank as the No. 2 reason for saving among Taiwanese at 52 percent, followed by overseas travel at 42 percent, which ties with plans to buy or renovate property, the survey indicated.
While 61 percent of respondents in Taiwan and Hong Kong are setting aside income for retirement, 62 percent of Chinese respondents are saving for investments, the survey showed.
Only 34 percent of Chinese respondents save for retirement, while overseas travel is driving 49 percent of respondents to save.
The desire to purchase electronic gadgets is prompting 43 percent of Chinese to save, which is higher than the 30 percent in Taiwan and 24 percent in Hong Kong, the survey said.
Across Greater China, 92 percent of Taiwanese respondents expressed confidence in their ability to manage their daily finances, which is lower than the 95 percent in China, but higher than the 88 percent in Hong Kong, the survey said.
Moreover, Taiwanese are highly involved in investment decisionmaking, with 77 percent regularly monitoring their investments and comparing product information before buying financial products.
However, the penetration rate of mobile applications is low among Taiwanese when banking at 15 percent, compared with 35 percent in China and 22 percent in Hong Kong, suggesting ample room for growth in the mobile banking business, the survey indicated.
The MasterCard Inc survey questioned 7,756 consumers across 16 Asia-Pacific markets in March and April this year.