The Economic Risk and Security for the Elderly in Taiwan

• Main Authors: Chan, Yi-chang, 詹宜璋
• Other Authors: Wang George Cheng
• Format: Others
• Language: zh-TW
• Published: 1998
• Online Access: http://ndltd.ncl.edu.tw/handle/78458032007347302438

博士 === 國立中正大學 === 社會福利學系 === 86 === 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.