The Accumulated Retirement Wealth and Saving Adequacy under New Labor Pension Act in Taiwan

• Main Authors: Hsiao Ling Ting, 丁曉鈴
• Other Authors: 詹錦宏
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/45811379208331598144

碩士 === 長庚大學 === 企業管理研究所 === 95 === The difference between other related references and my thesis is the methodology that I use the topic of life cycle hypothesis. I calculate the average saving of whole people and five equal divisions of households according to disposable income. Under the assumptions of 2% discount rate and 60 years old of retirement age, the whole average consumption expenditure after retirement is approximately NT$3,260,000. The retirement saving adequacy of whole people and group 1~4 is not enough. Although the practice of New Labor Pension Act helps whole people very much, we must take more care of lower disposable income groups. When the discount rate rise to 6% and add the labor pension fund, 80% people on group 2~5 get the saving adequacy situation. If labor delay the retirement age to 62 and 65, there are just 40% people adequate. And if they delay the retirement age to 67 and add the labor pension fund, there are almost 60% people adequate on 2% discount rate. The compensation of employee, property income, the current transfer receipts, and labor pension fund are the important factors which influence the saving adequacy. Finally, we suggest that lower disposable income people can purchase the Flexible Premium Deferred Annuity (FPDA) and Single Premium Deferred Annuities (SPDA). They also can develop their second job ability in order to delay their retirement age. We also suggest the government must adopt the Nation Annuity, and monitor the labor pension fund to increase the rate of return to 6%. Key words: New Labor Pension Act in Taiwan、Accumulated Retirement Wealth、Saving Adequacy、Life cycle hypothesis