TAIPEI (Taiwan News) — Taiwan faces a looming retirement crisis, with two massive retirement waves set to shrink the workforce by 6.67 million amid low birth rates, weak senior labor participation, and youth disengagement.
As baby boomers born in the late 1950s and early 1960s reach 65, Taiwan is experiencing the largest wave of retirements in its history, per Liberty Times. Sixteen years later, a second wave will hit as those born in the late 1970s and early 1980s retire.
According to the Ministry of the Interior, the first baby boom occurred between 1958 and 1966, with 3.78 million births. This generation began reaching retirement age in 2023, triggering the first wave.
The second baby boom occurred between 1976 and 1982, with 2.89 million births. Now in their late 40s, this group will start retiring in about 16 years, ushering in the second wave.
During the first wave, 3.78 million will leave the workforce over nine years, while only 1.6 million new workers will enter by turning 15. This will create a net loss of more than two million workers.
Labor participation among those 65 and older is only about 10%, far below South Korea's and Japan’s 25–35%. Among those aged 15–29, the rate is just 38% due to extended schooling, compared with over 60% in many Western countries.
Ministry of Labor data shows that in the past five graduating classes, around 196,000 college graduates were not enrolled, employed, or in military service. Many are believed to be staying home or rejecting overwork and doing the bare minimum.
In August, Taiwan's population dropped for the 20th consecutive month to 23,328,343. This was a decline of 78,265 from the same time last year, and a decrease of 9,593 from July.
