TAIPEI (Taiwan News) — The Directorate-General of Budget, Accounting and Statistics said that Taiwan’s social welfare payments for seniors reached NT$1.3 trillion (US$41.6 billion) last year, mainly driven by population aging, marking the sixth consecutive year such payments have exceeded NT$1 trillion.

According to DGBAS, senior welfare payments account for 49% of Taiwan’s NT$2.7 trillion social welfare spending last year, an increase of 2.3% from 2023. The agency said the spending also covers care for people with disabilities, health insurance, childbirth and childcare support, unemployment benefits, and housing loan subsidies, per CNA.

DGBAS reported that social welfare spending is dominated by support for seniors, followed by health insurance at 32.5% and childcare allowances at 7.6%. The agency forecasts that as Taiwan’s birth rate remains low and the population continues aging, related spending will keep rising.

The agency noted that NT$1.1 trillion of senior welfare payments went to pensions and long-term care programs. Childcare support rose 3.4% from 2023, driven by higher subsidies for early childcare, private university tuition, partial high school fee waivers, and student loan assistance. The government hopes these programs will help raise the birth rate.

As of November, Taiwan’s population aged 65 and over reached 4.65 million, accounting for 19.99% of the population, approaching the 20% threshold for a super-aged society. The regions with the highest elderly populations are Taipei at 24.1%, Chiayi at 24.03%, and Nantou at 22.6%.

Meanwhile, 7,946 babies were born in November, down 1,512 from October and 36% below the same month last year. In the first 11 months of this year, 98,000 babies were born. Taiwan is expected to set another record for its lowest birth rate, continuing a nine-year trend of declining newborns.

DGBAS added that Taiwan’s social welfare spending last year reached 94.8% of the population, ranking 30th globally. This places Taiwan ahead of Japan at 94.6% and well above South Korea at 80.2% and China at 75.6%.