Retirement savings insufficient for 82% of Taiwan’s prime-age workers

Healthcare costs beyond social insurance emerged as the most pressing concern.

Taiwan’s young working demographic has shown a lack of retirement preparedness, with 82% of prime-age workers and pre-retirees expect to rely on some form of employment income in retirement, indicating concerns about the sufficiency of existing savings.

“This research underscores the critical need for innovative retirement solutions that address both income security and health-related financial risks,” said Jae Ho, Chief Executive Officer, RGA Taiwan.

A new report from the Society of Actuaries (SOA) Research Institute, in collaboration with Reinsurance Group of America (RGA), has revealed persistent gaps in retirement preparedness across Taiwan's population, particularly amongst younger workers. The findings present actionable insights for insurers looking to address long-term financial security amidst a rapidly aging population, with more than 18% of Taiwan's citizens now aged 65 or older.

Based on a survey of 750 respondents conducted in November 2024, the report titled “Retirement Readiness in Taiwan: Financial Security and Risk Perceptions” shows growing demand for insurance products that provide guaranteed income and protection against health-related financial risks. 

Whilst retirees are more likely to have taken active planning steps—61% reported calculating their retirement assets—only 49% of prime-age workers (ages 30 to 45) have done the same.

Healthcare costs beyond social insurance emerged as the most pressing concern, cited by 96% of respondents. 

This has driven strong interest in retirement products with health-related benefits, such as annuities that offer increased payments in the event of critical illness. 

Interest in tax-deferred annuity products is also high, with 89% of respondents expressing willingness to consider them. 

Overall, 74% said they would be open to converting part of their retirement savings into lifetime-guaranteed annuities.

The study points to a generational divide in retirement planning and a growing need for early financial education. 

Amongst financial product features, guaranteed income (60%) and guaranteed returns (58%) ranked highest in importance. 

Insurers are now being urged to respond with tailored product offerings that balance income stability with health coverage, especially as digital engagement with financial tools grows.

The report noted that mobile app usage for retirement planning more than doubled from 9% in 2018 to 19% in 2024.