Chinese more aware of retirement planning: report

Chinese people are becoming more aware of the importance of retirement plans, according to a survey by Tsinghua SEM and Aegon THTF Life Insurance.

The survey showed that China ranks the second in terms of its people's retirement preparedness, behind India and followed by Brazil, among the 15 countries that participated in the study.

Chinese people’s retirement readiness index stood at 6.65 points, with the full mark being 8 points.

The reading has kept rising for three consecutive years, signaling that residents are becoming more upbeat about their old-age life, according to Chen Bingzheng, professor at the School of Economics and Management, Tsinghua University.

Findings relevant to China are based on 1,800 workers and 200 retirees across 29 provinces.

The research found that people have a more positive mindset toward retirement, and their sense of financial security is improving.

For example, in terms of the sources of retirement income, Chinese are resorting to diversified means including but not limited to savings.

However, China will be under great pressure when it comes to the issue of being an aging society.

Data from the Aegon Center for Longevity and Retirement noted that by 2050, one in four people over the age of 60 will live in China, with the country’s current government pension system facing increasing funding challenges.

This means China is welcoming “a window period” for developing industries related to the elderly, in which insurance companies will play an irreplaceable role.

Shang Jingguo, secretary of the Insurance Association of China, said that to better cope with the upcoming aging problem, insurers should partner with service providers for the seniors, make concerted efforts and offer high-quality services.

More specifically, the underwriters can develop more suitable products like long-term care insurance policies so the elderly can live a healthy and dignified life, Shang added.