60% of Citizens Unprepared for Retirement Funds! Experts Suggest: Accumulate Nearly 10 Million Retirement Fund with a Monthly Investment of 5000 TWD

According to a recent survey, more than 60% of citizens have not yet begun preparing for retirement. The former Chairman of the Financial Supervisory Commission (Republic of China, Taiwan) suggests mastering two financial strategies, with a monthly investment of just 5000 TWD, to accumulate nearly 10 million TWD by retirement.

Survey Shows Increased Awareness of Retirement Preparation

A "10,000 People Retirement Preparation Survey" indicates that nearly 60% of the public consider "preparing for retirement" an important financial goal. The average expected retirement fund needed is 14.03 million TWD, an increase of nearly 3 million TWD from 11.11 million TWD in 2020, demonstrating an increased awareness of retirement preparation among citizens. Additionally, the survey noted that the expected retirement age has been postponed, with an average of 62.5 years. 

Common Misconceptions About Retirement Financial Planning

Many citizens hold four major misconceptions about retirement financial planning:

1. Failing to start regular fixed-amount savings early.
2. Beginning retirement preparation too late, results in high savings costs.
3. Choosing the wrong investment targets leads to improper retirement investments.
4. Inability to adhere to a long-term retirement investment plan.

Importance of Early Preparation

According to financial experts' calculations, early preparation for retirement is crucial. Starting at age 25, with a monthly fixed investment of 3000 TWD and an 8% annual return rate, one can accumulate 9.66 million TWD by retirement. If the monthly investment is increased to 5000 TWD, the accumulated amount could reach 16.1 million TWD. These figures indicate that starting a regular fixed-amount investment plan early can ensure better financial security for future retirement.

Starting an investment plan with regular and fixed amounts early ensures better financial security for retirement. (Image sourced from freepik)

How to Start a Retirement Financial Plan

The former Chairman of the Financial Supervisory Commission recommends that young people start their retirement financial plans as early as possible, providing two specific financial strategies:

1. Regular Fixed-Amount Investment: Invest a fixed amount each month, choosing stable investment targets such as index funds or low-risk stocks to achieve long-term value growth.
2. Increase Investment Amounts: Gradually increase the monthly investment amount as income rises, enabling faster accumulation of sufficient retirement funds.

Preparing for retirement is an important financial goal and a safeguard for future life. (Image sourced from freepik)

Preparing for retirement is not just an important financial goal but also a safeguard for future life. Starting planning and implementing suitable investment strategies early can effectively avoid financial pressure at retirement. For those who have not yet begun preparing, now is the best time to rethink and plan for retirement finances. Even starting with small amounts through regular fixed-amount investments can ensure a comfortable retirement in the future.