The population transition in Taiwan has been reaching the final phase that the population aging will be phenomenal during the first quarter of the next centry, due to a hastened decline of fertility since 1980. Given the expected upsurge in the aging of population, and consequently the depletion of family support resources for the elderly, it appears only appropriate that Taiwan is seeking to build a social security system including national pension and health insurance programs. This paper explores the effects of population change on the fiscal balance of some hypothetical national pension programs, providing a framework for the investigation of the dynamics involving individual contribution to and benefit from the programs. Two scenarios have been constructed to reflect the ongoing debates on the national pension program: the first one a partially funded (saving) program and the second more inclined to pay-as-you-go. It is shown that given a benefit fixed on 30% of the average basic income, if the population should stabillize at a constant age structure in the long run, the partially funded program entails a lower rate of premium but faster increase in the premium. Based on the comparison of three series of projected-hypothetical populations, the effect of pupulation change on the fiscal balance is further studied. It is demonstrated that the rate of premium directly reflects the fertility level when the population reaches stability. The closer the final fertlity level approaches the replacement level, the lower the rate of premium can be sustained.