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Taiwan revamp delivers greater pension security

Asia’s fastest growing pension fund provides enhanced security of membership funds through an innovative minimum guarantee

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Taiwan revamp delivers greater pension security

Asia’s fastest growing pension fund provides enhanced security of membership funds through an innovative minimum guarantee

Life on the beautiful island

Taiwan’s transformation from a poor agricultural society into one of the world’s 30 richest states is a modern success tale. In less than 50 years, it has become a major trading force and a renowned creator of high-tech goods.

During this time, the island once known as Formosa (beautiful) went from being a foreign aid recipient to an aid provider and assumed the trappings of advanced economies: advanced markets, general education and health opportunities, and a relatively free media. Taiwan also turned its attention to social welfare issues, including pensions.

In 1950, Labor Insurance, a mandatory occupational insurance scheme providing maternity, sickness, unemployment and old-age insurance, was implemented. This was complemented in 1984 by a mandatory second pillar occupational pension scheme, one of the first of its kind in Asia, but one that proved to have design issues.

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