Some Taiwanese pension stats

Some Taiwanese pension stats

On September 3, 2016, some 200,000 to 300,000 veterans, retired teachers, retired government workers and retired workers will go into the streets and protest the new government’s proposed revision of Taiwan’s pension system.  President Tsai Ing-wen, Vice President Chen Chin-ren and chief cabinet minister Lin Chuan have made statements to appease the protestors’ anger in anticipation of the seriousness of the September 3 protest.  The new government is scared!

In 1995, Taiwan’s average life expectancy was 72 years old for men and 78 years old for women.  In 2014, the average life expectancy for men was 77 years old and that for women was 83 years old.  But, in 1995, Taiwan’s birthrate was 15/1,000 and in 2015, Taiwan’s birthrate was 9/1,000.  In 1995, Taiwan’s senior population of those 65 years old and older constituted 7.6% of the total population.  In 2015, senior citizens constituted 12.5% of the total population.  In 1995, each 100 young and working age adults supported 11 seniors.  In 2015, every 100 young and working age adults supported 17 seniors.  Similarly, in 2016, every 5.6 young and working age adults support one senior.  By the year 2061, every 1.3 young and working age adults will have to support one senior.

In 2014, the average life expectancy was 79.8 years old, and an average worker retires at 57.8 years old.  He or she would live 22 years in retirement.

From 1974 to 1995, salaries of soldiers and military staff, government bureaucrats and teachers were increased by a total of 230%.  However, from 1996 to 2016, their salaries were raised by only 23%.  In the 1980s, annual interest rates offered by Taiwanese banks was 12.5%.  This dropped to 1.29% in 2015.  But, pension funds of veterans, retired public servants and retired teachers are guaranteed 18% interest by law.  This is a Kuomintang policy to guarantee the livelihood of veterans, bureaucrats and teachers and their dependents who have dedicated all their lives, contributed their entire life and even given their lives to serving the country.

Currently, monthly payout to a veteran on Taiwan is NT$49,379, to a retired bureaucrat is NT$56,383, to a retired public school teacher is NT$68,025, to a retired private school teacher is NT$17,223, to a retired farmer is NT$7,256, and to an ordinary citizen as social security is NT$3,628.

The new government’s proposal is to cut the payout to the veterans, retired bureaucrats and retired teachers to “rescue” pending bankruptcies of the pension funds.

The veterans, retired bureaucrats and retired teachers as well as laborers have planned a mass protest on September 3, 2016, and the new government is scared.

 

 

 

About masterchensays

Victor Chen, herbalist, alternative healthcare lecturer, Chinese affairs analyst, retired journalist
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