A survey on retirement planning found a majority of respondents prefer a more hands-on approach instead of relying on government plans, JPMorgan Asset Management Co said yesterday.
A survey of 1,070 respondents found that 69.6 percent favor a more open platform that allows a higher degree of participation in investment strategies decisions, the company said.
Only 12.5 percent of respondents were opposed to changes that would reduce the role of governments in their pension plans, while 17.9 percent said that they had no preference or had not looked into the matter.
Amid the disputes over the government’s pension reform efforts to prevent the eventual bankruptcy of the various plans, the survey found that 51 percent of respondents supported benefit cuts, delayed retirement benefits or higher pension contributions, while 31.5 percent opposed any reduction in benefits.
Most of those opposed to any changes were aged between 50 and 59, the survey found.
An open investment platform would allow for improved retirement readiness, as younger people might aim to generate higher returns because they have a higher risk appetite compared with older people, said Jerry Huang (黃泓智), a professor in National Chengchi University’s risk management and insurance department.
Respondents were more willing to contribute toward their retirement plans if they were able to have a greater role in the decision-making process, Huang said.
JPMorgan Taiwan vice president Alex Chio (邱亮士) said that most Taiwanese are woefully unprepared for retirement.
While most people are hoping to have between NT$14.5 million and NT$17.5 million (US$480,833 and US$580,316) in retirement funds, the majority have set aside less than NT$4 million, Chio said.
JPMorgan’s index measuring retirement sentiments for Taiwan this year rose 2.4 points to 64.3 points as people step up preparations and investment efforts, he said.
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