Taking on Taiwan’s ruinous and partisan pension system
Pensioners hate the cuts; young people don’t think they go far enough
THE protests outside parliament got so ferocious that the 2,000 policemen defending the building barricaded it with barbed wire. That was soon festooned with angry placards. Inside, opposition politicians sought to disrupt parliamentary business: they seized the podium, and brawls broke out. In Taiwan, as everywhere else, reining in expensive pensions is not easy. But Tsai Ing-wen, the president, seems determined to press on. The current system, she said last month, is on “the brink of bankruptcy”.
The government’s liabilities have swelled to almost NT$18trn ($597bn), nine times its total annual expenditures. That is divided among funds for different professions, in which contributions from current workers help to finance payments to pensioners. The fund for civil servants is projected to go bust by 2031; the one for teachers by 2030; the one for private-sector workers in 2027; and the one for the armed forces in 2020.
This article appeared in the Asia section of the print edition under the headline "Superannuated"
More from Asia
Chinese firms are expanding in South-East Asia
This new business diaspora is younger, better-educated and ambitious
The family feud that holds the Philippines back
Squabbling between the Marcos and Duterte clans makes politics unpredictable
The Maldives is cosying up to China
A landslide election confirms the trend