Sustainability and inequality of Taiwan's National Pension Insurance-Reference-Cited by-同舟云学术

Sustainability and inequality of Taiwan's National Pension Insurance

Published:2023-03-31 Issue:1 Volume:33 Page:263-289
ISSN:1369-6866
Container-title:International Journal of Social Welfare
language:en
Short-container-title:Int J Soc Welfare

Author:

Chang Chih‐Kai¹,Tao Hung‐Lin²³^ORCID,Chang Hsun‐Fang¹

Affiliation:

1. Department of Financial Engineering and Actuarial Mathematics Soochow University 56 Kuei‐Yang St., Sec. 1 Taipei 10048 Taiwan

2. Department of Economics Soochow University 56 Kuei‐Yang St., Sec. 1 Taipei 10048 Taiwan

3. Research Center for Humanities and Social Sciences Academia Sinica Taipei Taiwan

Abstract

AbstractTaiwan's National Pension Insurance (NPI) is a compulsory defined benefit pension insurance scheme. However, paying the NPI premium is not mandatory. We use the NPI administrative data of more than 489 million observations to investigate the NPI's sustainability and inequalities for various groups. We find that NPI participants pay their premiums either consistently or not at all. Although the overall willingness to pay the premiums has been declining, one group of the insured persons consistently pays, thereby maintaining the sustainability of the NPI. Intergenerational and intragenerational inequalities are both found in the NPI; however, the government's premium subsidy reduces intragenerational inequality, except for young adult males who need the NPI and regularly pay premiums. Our empirical results suggest that subsidising these young male citizens strengthens the NPI's sustainability and mitigates the intergenerational and intragenerational inequalities of the NPI.

Publisher

Wiley

Subject

Sociology and Political Science

Link

https://onlinelibrary.wiley.com/doi/pdf/10.1111/ijsw.12599

Reference18 articles.

1. Intergenerational redistribution and risk sharing with changing longevity

2. How the Growing Gap in Life Expectancy May Affect Retirement Benefits and Reforms

3. Heuristics and Biases in Retirement Savings Behavior

4. Taiwan’s National Pension Program: A remedy for rapid population aging?

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