The purpose of this thesis is to assess the reality and
development of economic security for the elderly in Taiwan, with
the risk perspective we would review the possible relationship
between basic provisions of economic protection and the planning
of the National Pension Insurance (hereafter cited as the NPI).
In addition to a literature review, we are also to examine
similarities and differences among economic risks facing the
aged population in Taiwan, based on the empirical data from the
Survey of Family Income and Expenditure in Taiwan Area, ROC,
conducted by the Directorate-General of Budget, Accounting and
Statistics, Executive Yuan, as well as to figure out the
possible effects and efficiency which could be made to old-age
economic security through the NPI. Many conclusions we can draw
from this study include:1. Relatively higher degree of economic
risks in the aged population:Along with a single index of
poverty and the aging process in demography, the proportion of
elderly population in the poor should increase and mark a
development called "old-age-based poverty", meaning the
increasing relationship between the aged population and poverty.
Besides, a further analysis through multiple and dynamic indices
of poverty finds that the economic disadvantages of the elderly
should be related to income levels.2. Significant differences
among economic risks in various elderly groups:The aging process
of "reduced income and poor health" could double the pressures
on economic risks of the aged population (especially for the
very old). At the aspect of income, the risk distribution is
mainly in U-type; and it is linear to age, regarding to the
aspect of needs (especially because of increasing expenditures
on health care). The effect of gender does imply the relatively
economic advantages of the male, while the highest degree of
economic risks should go to the female-dominated statues such as
unpaid family workers and housewives.3. Limited functions of the
existing economic protections for the elderly:For the reasons of
a lump-sum payment and lower average benefit, the existing
occupation-related insurance programs are difficult to commit to
a full range economic protection. Universally available aged
allowances in some counties do face a critical financial
shortage because of the absence of subsidies from the Central
Government. This makes such allowances unsustainable. Finally,
the means-tested living allowance for the low-middle-income
elderly, accompanying with the welfare allowance for the aged
farmers, have become the most important safety net, and together
cover around one third of the total aged population.4. A dilemma
between effect and efficiency in the NPI:The examination of this
study on policy goal towards economic security (poverty
alleviation) shows that it is very difficult, for the NPI as a
basic provision of old-age pension, to meet simultaneously both
requirements of effect and efficiency.In order to fill up gaps
mentioned above and to promote economic security for the elderly
in Taiwan as far as possible, this study suggests:1. Principles
of pluralism and positive discrimination for pooling risks:The
old-age economic risks (including individual and collective
risks) are naturally divergent and should be sorted out with
varied actions, to which a pluralist (or multi-pillar) system is
necessary to a comprehensive coverage of economic security.
Additionally, a significant difference of risk is existing
across age, gender and occupation, and this needs particularly
attention on economic risks of the very old and the aged female
(especially the elderly housewives, and the aged and unpaid
family workers), through measures of positive discrimination.2.
Subsidies to the NPI contributions according to index of varied
economic risks:The risk index should be taken into account as
subsidies are made to the NPI contributions, if the benefit
remains flat rate. Theoretically this would be even more
adequate to principles of social justice and citizenship, as
well as achieve a similar effect of external subsidies. However,
the current proposal, which provides 20% subsidies to the NPI
contributions regardless of varied risks, seems nothing to do on
redistribution and the improvement of pooling risks.
Furthermore, the present economic conditions, government revenue
and necessary costs for resource transfers, seem all negative to
raising taxes for subsidizing purpose, in terms of efficiency.