Is 10 Million in Retirement Savings Not Enough? Key Report Reveals 80% Underestimate Future Expenses — Experts Recommend 4 Asset Allocation Strategies

How much retirement savings is enough has long been a pressing concern for workers. In 2026, the 'Enforcement Rules of the Labor Pension Act' will undergo several changes, including stricter penalties for employers who refuse employees' '6% self-contribution,' and a new 30-day cooling-off period allowing workers to reconsider whether to receive their pension as a lump sum or monthly payments.

Today (15th), the Facebook finance page 'Gu Hai Lao Niu' cited data from the '2025 Taiwan National Financial Health Key Report,' released at the end of 2025, to analyze retirement preparedness. He pointed out that many have long asked, 'Is 10 million enough for retirement?' However, this difficult question has become even harder to answer—not only because stock markets rise, but because 'retirement living costs also increase.'

How much do retirees actually spend? 80% underestimate future expenses

On December 4, 2025, Cathay United Bank and PwC (PricewaterhouseCoopers) released the '2025 Taiwan National Financial Health Key Report,' evaluating the financial health of Taiwanese citizens across five key dimensions. The results show that the financial health score of the population has declined compared to 2023, due to rising living costs, economic conditions, and retirement preparedness, placing greater financial pressure on individuals.

The survey found that 82% of pre-retirees underestimate their actual post-retirement living expenses. Pre-retirees estimate their monthly retirement expenses at approximately NT$61,000, while retirees' actual average monthly spending reaches NT$72,000—a difference of about NT$11,000.

How much is the ideal retirement fund? Expectations surge nearly NT$5 million in two years

Gu Hai Lao Niu highlighted that the 'National Financial Health Key Report' shows a gap between pre-retirees’ expectations and actual retirement spending. More strikingly, the 'ideal retirement fund' has risen from NT$14.31 million in 2023 to NT$19.01 million in 2025—a jump of NT$4.7 million in just two years. However, he emphasized that this does not mean one cannot retire without NT$19 million. The key to retirement planning is not just the total amount, but whether one has the ability to generate sustainable cash flow.

He illustrated with a calculation: assuming monthly retirement expenses of NT$60,000, annual spending would be NT$720,000. Over 20 years, that’s NT$14.4 million (NT$21.6 million over 30 years)—not including medical care, long-term care, or travel expenses.

Gu Hai Lao Niu further noted that inflation—the most commonly overlooked factor—is not included in these figures. The real challenge of retirement isn’t a 20% market drop in a given year, but the fact that while the 'income faucet' shuts off, living costs continue to rise annually.

Therefore, once the salary 'faucet' is closed, individuals must establish several 'small pipes' to generate income, such as:

- Long-term accumulation through ETFs - Dividends from stable companies - Bonds or fixed-income assets - Sufficient cash reserves

How should retirement assets be allocated? Cash flow is key

Regarding retirement asset allocation, Gu Hai Lao Niu explained that different assets play different roles—growth, income generation, and stability during market downturns. He emphasized that retirement doesn’t start at age 65; preparation should begin at 30 or 40. Saving an extra NT$5,000 per month for 10 or 20 years, combined with investment and compound interest, gradually builds the confidence to work less, stay calm during market crashes, and choose one’s lifestyle in retirement.

In conclusion, he said not to be intimidated by the 'NT$19.01 million' figure—the truly frightening thing is 'not having started yet.' The best time to begin retirement planning was in the past; the second-best time is now.