(ECNS) -- Middle class citizens in China lack vision on how to realistically fund the retirement they desire, especially when compared to peers in the north Asian region, a survey has found.
Some 62 percent of middle class citizens have no retirement plan compared to a regional average of 45 percent, according to an AIA study conducted across four north Asian economies – China, Hong Kong, Taiwan and South Korea.
Mainland citizens believe that approximately 11.1 million yuan (about $1.79 million) is required to have an enjoyable, comfortable retirement despite the fact that the average pension is only 6,423 yuan.
As little as 25 percent of mainland respondents are worried about facing an insufficient pension, which is much fewer than in South Korea (77 percent), Taiwan (51 percent) and Hong Kong (49 percent). Some 41 percent of Chinese, again the lowest of the four, choose to save for their retirement by simply banking their money.
Chinese also lack awareness of financial instruments and are more likely to rely on their offspring to fulfill their high expectations of life after retirement.
Some 76 percent of mainland respondents believe they are financially secure, compared to a regional average of 69 percent. When asked whether it is more important to arrange financial plans than live for the moment, 43 percent of mainland people say yes, which is considerably lower than the regional average of 57 percent.
In addition, 48 percent of mainlanders believe luck plays a critical role in financial stability, which is the highest of the four.
According to Zhang Xiaoyu, the chief business executive of AIA China, mainland citizens lack vision and action when it comes to financial risk. They clearly lag behind with regards to long term financial planning and emergency savings.
