The latest worldwide retirement life survey conducted by the Hong Kong and Shanghai Banking Corporation Limited (HSBC) shows that although many mainland Chinese people regard retirement as a new stage in life, they aren't fully prepared for the stage and have no clear concept of what their post-retirement financial situation will be like, according to the China Youth Daily on July 13.

Mainland Chinese urban dwellers have depended on the government for their retirement living over a long period of time. [www.ycwb.com]

The annual survey, entitled The Future Retirement Life, has been conducted for the past 5 years. It spans 15 countries and regions and is considered the largest survey in the world related to aging and retirement issues.

According to the survey, only 9 percent of mainland Chinese people are fully prepared for retirement life, which is lower than the global average of 13 percent. Nearly 32 percent of mainland Chinese people have made no plans at all for their retirement life; among the 59 percent who have done some preparation, more than 90 percent of those have no clear concept of what their life will be like.

The survey notes that mainland Chinese urban dwellers have depended on the government for their retirement living over a long period of time. However, with the continuous improvement of living standards, their requirements are also focusing on a much better quality of retirement life. Many people have come to realize that, in addition to the pension to guarantee their basic living needs, overall financial preparations are very important.

A concluding result of the survey indicates that individuals need to take much bigger responsibilities for their own post-working life. While the social security system and employers do provide basic support, more and more after-retirement guarantees will come from individuals.

Among those who took the survey in China, 41 percent save money for their children -- this is the highest number among all countries surveyed. Only 14 percent of mainland Chinese people save money specifically for retirement, compared with the global average of 23 percent.

Yet China seems to have more time than other countries and regions to prepare for and deal with problems associated to an aging population. The latest United Nations statistics show that not until 2030 will the number of people in China's mainland above 65 years of age exceed those under the age of 14.

As for how to deal with the financial preparations of retirement, the first choice for Chinese families is to pay into pension funds, accounting for 34 percent of those surveyed. The figure shows that people have come to realize they must prepare for retirement, but they still hope the government will continue to play the main role in this field.

The survey shows a comparative lack of professional guidance on the financial knowledge needed to plan a retirement guarantee, with 19 percent never getting any form of basic financial education and 39 percent never getting any form of professional financial education.

In addition, many Chinese people lack a clear understanding of their long-term financial needs. Among those surveyed, 38 percent had a "clear understanding of their short-term financial situation," but only 28 percent had a clear understating of their long-term financial situation.

(China.org.cn by Li Jingrong on July 13, 2009)