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Many not prepared for ideal retirement life

By Gao Songya and Hu Yuanyuan | | Updated: 2016-12-26 13:59

Chinese have lowered their expectations on life after retirement for the first time since 2013, according to the recently released 2016 Chinese Retirement Readiness Index.

The index dropped from last year's 6.51 to 6.0, according to a study jointly conducted by China Center for Insurance and Risk Management under the Economics and Management School of Tsinghua University (Tsinghua SEM) and Aegon THTF Life Insurance Co Ltd.

Apart from the slowdown in global economic growth, factors at home have also dented confidence. Those aged between 25 to 44 years, though supposed to be saving up for their own retirement life, are under extreme burden to provide for their children and parents. There is also a clear gap between people's positive expectations and inadequate preparations for the future. More than 60 percent of those polled picture themselves travelling or developing personal interests after retirement, while only 15.3 percent admit to saving for post-retirement life.

Chen Bingzheng from Tsinghua SEM attributed the gap to the people's weakened sense of responsibility and an undeveloped retirement plan, insufficient savings, and less confidence in having an ideal income.

The aging yet richer population in China needs mature annuity plans and diversified early investments, including insurances, savings, funds or properties to be self-independent after retirement, instead of pinning their hopes on the government. The enterprises, which are contributing only 24 percent to people's pension, should cooperate with commercial insurances and offer more guidance or service at earlier stage to employees on personal investment, said Chen.

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