Friday, June 22, 2012

Inflation a major concern for baby-boomers: survey

A growing number of baby-boomers in Asia are concerned about the effects of inflation on their retirement purchasing power, according to a survey conducted by Allianz Global Investors (AGI).

Two-thirds or 67 percent of boomers in Singapore, South Korea, Taiwan and Hong Kong indicated that inflation was their main retirement concern.

On the other hand, 35 percent are worried about outliving their assets, while 31 percent fear the poorly performing capital markets.

AGI noted that these issues are affecting investment product choices.

Around 56 percent of respondents consider property to be the best asset as it is less affected by inflation. At the same time, 97 percent revealed that they own property for personal use while 20 percent own it for investment purposes.

Other preferred products are life insurance, deposit accounts, precious metals and fixed annuities. One in seven prefers lifecycle and lifestyle funds.

Meanwhile, regulation affects the type of product choices. AGI revealed that mandatory savings plans for Singapore and Hong Kong citizens means that about half of the savings are set aside for formal retirement accounts.

More than 600 people across the region participated in the AGI survey.

View the original article here

Source From Property Guru

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