AGI survey reveals Asian inflation concerns

Asia’s fast growing baby boomer generation is becoming increasingly concerned about the effects of inflation on their retirement purchasing power, according to a survey by Allianz Global Investors.

Two-thirds, 67%, of boomers in Hong Kong, Singapore, South Korea and Taiwan cite inflation as their greatest retirement concern.

Outliving assets and fear of poorly performing capital markets are the main concern for 35% and 31% of those surveyed respectively.

AGI said that these concerns are affecting choices of investment products. Property, which is considered less affected by inflation, is consider the best asset by 56% of those surveyed. Some 97% of those surveyed said they own property for personal use, and about 20% own property for investment purposes.

Deposit accounts, life insurance, fixed annuities and precious metals are other preferred products. So-called lifecycle and lifestyle funds are only preferred as the top choice by about one in seven.

Regulation also has an impact on the type of products considered suitable. Mandatory savings plans for citizens in Singapore and Hong Kong mean that about 50% of savings there are allocated to formal retirement accounts, AGI said.

The survey is based on responses from over 600 interviewees across the region.

Click here to read the full report findings: http://retirement.allianzam.com/Documents/Market%20Trends%20and%20Surveys/2012/IPP-1204-asia-retirement-survey-50plus.pdf

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