Basically, because it has no social net for pension plans. A realistic one I mean.
My coworkers have a generous pension after leaving thsi placve but most say you need at least 10 million savings to retire… aside from taht pension. They went to the streets when these pensions were reduced 5 to 20k, depending. So, they will be receiving 50 to 80k siting at home, and still need 10 million NTD in savings.
The rest of the population is looking forward to 2k, 5k, maybe 10k tops as pension money, so if they can, they save. If they can, they buy properties, as those can generate income/gain value.
Yes, I can personally attest that there are people in Taiwan who are top muckety-mucks in their corporations who have personal drivers who chauffeur them to and from the office, yet they live in small, ordinary apartments, eat at local noodle shops, and take the bus and MRT to get around town for errands not involving work. Such people feel no need to flaunt their wealth.
I think a big area exist between “showing/showing off” and “hiding” money. Some people just don’t have a desire to have luxury goods, that doesn’t equate to them hiding money.
I know this older lady that worked a government job (teaching or something), retired. The thing she does each month is walking around town collecting her rent from places she owns, cash!
No idea. This 10 million is on top of their pension. They already own houses. And they say 10 million is the minimum.
I also remember reading about that 10 million minimum savings amount necessary in order to retire on the papers somehwere. But don´t remember the details.
The older government colleagues have at least two places. My landlady worked for the gummit and she has, to my knowledge, 3 rentals.
However, we have a few sad cases. One is an old lady who was left homeless when she cashed in all her pension and gave it to her lover. Her family left nothing to her as she was a girl, so when she lost her retirement savings and pension, she lost it all. She is homeless now, lives in a shelter by Taipei Main station and drops here to reminescense with old colleagues. I know a couple of other people who are in teh same boat and it is really heartbreaking. One miscalculation and puff, you are out on the street.
I know a few very, very wealthy Taiwanese (over 60 years of age) who started out with nothing…they are still very frugal.
I know quite a few certainly not wealthy younger people who drive BMWs, eat at W hotel level restaurants every week, travel abroad 3 times per year, wear the latest fashionable clothes, watches, etc.
Every time we have one group of friends stay at our house my wife and I always laugh at the luggage…the frugal people with money use the same old tired looking suitcase (or sometimes just a black luggage bag) while the stylish ones with little money bring the matching Rimowa suitcases.
I also know quite a few parents who support their children’s lavish lifestyles (in my opinion) while they spend most of their money on their children…some even in debt.
Depends, two of the richest Taiwanese I know who are best friends. One grew up poor and worked his ass off and enjoys spending money and luxury. Another grew up with money and isn’t into all of that.
Also it might be wise to “hide” money as a rich Taiwanese and keep it somewhere else in a account outside of Taiwan. There is a level of political instability, what do you think will happen to that money if China invades.
It is so difficult to judge wealth in Taiwan . I once got involved with a business group of investors here. They insisted on my joining them twice a week at an expensive Ktv . I hate Ktv . The nightly bill was thousands of US dollars …but they would penny pinch at work . Quite strange . As mentioned before I think they will spend a fortune on things they want to do , as long as not too many people see them doing it .
Is actually being frugal mix with being cheap… Cheap in a way like being without style, dignity and without good taste. No matter my personal beef with Taiwanese need to say most rich Taiwanese do have manners (at least in public, could be cause of face) comparing to Russian Tycoons, which are most annoying fucked up group anyone can deal with it.
And there is a lot of wealth hold by Taiwanese, in Taiwan and abroad too. I estimated between half and one million Taiwanese are millionaires. They are good at saving, being under radar. Government, as well local community has been super good to them for century. They pay peanuts on taxes.
