Tuesday, January 29, 2013 11:53 pm
Taiwan cuts pensions to avoid fiscal problems
The Associated Press
Greece's 93 percent pension payouts have been cited as a key reason behind its serious economic troubles.
Ma said Wednesday that Taiwan's aging population has pushed up pension payouts much faster than expected.
Ma says his proposed cuts - to be implemented in stages - will ensure the fiscal soundness of the pension system for at least 30 years. One of Taiwan's main pension conundrums is its extremely low birthrate - 1.06 percent in 2011. This puts a huge pension burden on a relatively small pool of young wage earners.
Ma's proposals require legislative approval.