The Labour insurance program is available for male citizens age 60, or female citizens aged 55 and over with at least 15 years of coverage. This fund supports those citizens who were gainfully employed.
The monthly pension is equal to 0.775% of the insured's monthly average covered earnings in the 36 months before retirement multiplied by the number of years of coverage plus NT$3,000 or 1.55% of the insured's monthly average covered earnings in the 36 months before retirement multiplied by the number of years of coverage, whichever is greater. The fund was established in 1950 and gone through several amendments. At the 60th anniversary on March 1, 2010 it was announced that the number of people insured by Labour Insurance has exceeded 9 million. Users of the fund may now select a lump-sum payment at retirement.
It is possible to claim early old-age pension at a reduced pension from the age of 55. The pension is reduced by 4% for each year that retirement is taken before the normal retirement age, up to 20%.
It is also possible to defer until the age of 65. The pension is increased by 4% for each year of deferred retirement, up to 20%.
The full retirement age will increase to age 61 in 2018, increasing gradually to age 67 by 2027.
The National pension program is for citizens age 65 and older who have been residents of Taiwan for more than 6 months a year for the last 3 years. The fund is for those who currently lack any pension benefits.
The monthly pension is equal to 0.65% of the monthly insured amount multiplied by the number of years of coverage plus NT$3,000 or 1.3% of monthly insured amount multiplied by the number of years of coverage, whichever is greater. The fund is used by about 4.06 million people.
Another source of retirement may be from the employer, which must provide at least 45 months of full salary for 30 years of service. This is depending on the company and the employment agreement.
Update 10/12/2010
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