Taiwan: Govt raises pension eligibility age
Source: Asia Insurance Review | Jun 2017
The eligible age for receiving government pensions for workers born after the year of 1957 will be pushed to 61 next year, due to changes in Taiwan’s labour insurance law that will become effective in 2018.
The amendments made to the law raise the age for retirement by one year in the first 10 years and then increase by one year biennially. In other words, the legal retirement age for pension eligibility will be raised to 61 in 2018, 62 by 2020, but 63 by the year 2022, 64 in 2024, and 65 by 2026.
The government said that it had to raise workers’ retirement age to meet the needs of an aging society.
Before the amendments were made, employees could receive all their pensions by the age of 55.
According to the Labour Insurance Act, workers have to be employed for more than 15 years and reach the age of 60 before they are eligible for government pension funds, and receive incentives if they decide to delay retirement.
The government is offering a 4% pension increase incentive for every year the labourer chooses to delay retirement. Those choosing an earlier retirement, though, face a 4% pension deduction for every year they leave the workforce early. A