Pension plan changes correspond with rise in average retirement age
By John Liu ,The China PostTAIPEI, Taiwan -- Due to a new labor pension system and an increasing average life span, the average age of retirement increased from 54.9 in 2005 to 57.9 in 2012, according to government officials.
October 1, 2013, 12:09 am TWN
According to the results of the “Employed Labor Movement Survey,” released by the Directorate-General of Budget, Accounting and Statistics (DGBAS), delayed retirement has become a trend both in private and public sectors. This phenomenon is common not only in Taiwan but also in other countries as well, DGBAS officials added.
Under the new labor pension system, payment installments are only collectable for those aged 60 or older, comprising a primary reason for delayed retirement, officials said.
Statistics show that 1,809,000 people left the workforce in 2012, of whom 85.7 percent volunteered to do so. Due to a slow economic recovery, the number of people who voluntarily left the workforce decreased by 2.8 percent. A total of 5.7 percent of people left the workforce due to layoffs, which was higher than previous years.
In addition, 5.2 percent left the workforce “to retire,” which was much higher than the 3.2 percent in 2011 and 2.6 percent in 2010. More people retired last year because they were afraid the pension fund might go bankrupt, and chose to retire in time to secure their pension, officials said.