Taiwan (TW)
A safe, democratic, tech-forward island with excellent public healthcare, dense transit, world-class food culture, and a strong base for East Asia.
Retirement & Pension in Taiwan
State pension, contribution refunds, private pension vehicles, and international agreements.
Taiwan's retirement system for workers has three main components: (1) Labour Pension (勞工退休金 — LP, new system since 2005): a portable defined-contribution individual account funded by employer mandatory 6% contributions; (2) Labour Insurance (勞工保險 — LI): a social insurance programme covering old-age benefits, administered by the Bureau of Labor Insurance (BLI); (3) National Pension Insurance (國民年金 — NPI): for those not covered by Labour Insurance. Foreign professionals working legally in Taiwan are covered by the Labour Pension system from their first day of employment. From 1 January 2026, all foreign professionals are covered by the Labour Pension Act (new system). Home-country pensions and private investments form the remaining pillars of expat retirement planning.
State Pension
Labour Insurance (LI) old-age benefits: the total LI premium rate is 11.5% of the monthly insured salary (2026), shared as employee 20% (approximately 2.3% of salary), employer 70% (approximately 8.05% of salary), and central government 10% (approximately 1.15%). LI provides an old-age monthly pension or lump-sum benefit. Labour Pension (LP) individual account: the employer must contribute no less than 6% of the worker's monthly wage into a personal portable account from day one. Employees may voluntarily contribute an additional amount (up to 6% of monthly wage, tax-deductible). The LP account earns a government-guaranteed return linked to the two-year fixed deposit rate. National Pension Insurance (NPI): for persons aged 25 and over who are not covered by LI (e.g., non-working residents) — premium rate is 10.5% of the monthly insured amount, self-paid by the insured. NPI provides a modest monthly pension from age 65.
Labour Insurance old-age pension standard age: 65 (fully phased in for workers born 1969 or later). Reduced early pension available from age 60 (4% annual reduction per year claimed before standard age; maximum 20% reduction if claimed 5 years early). Labour Pension individual account (LP): can be drawn from age 60 regardless of Labour Insurance history — workers aged 60+ with less than 15 years of LP contributions receive a lump sum; those with 15+ years may choose monthly pension or lump sum.
Labour Insurance old-age monthly pension: minimum 15 insurance years required; contribution periods across different employers can be combined. Old-age lump-sum benefit: eligible with as little as 1 year of LI coverage. Labour Pension (LP) individual account: no minimum period — employer contributes 6% from day one and the full accumulated balance is always the worker's property regardless of length of service.
Check your LP account balance online via the Bureau of Labor Funds website (bof.gov.tw) or in person at any BLI office. Check LI insured salary history and estimated benefit via the BLI website (bli.gov.tw) or the e-government portal with a digital certificate. Employers must provide annual contribution statements. For a full picture, combine LP account balance + LI benefit estimate + any home-country pension + private savings.
LP individual account: balances can be remitted abroad after the worker permanently departs Taiwan and submits a withdrawal application to BLI. LI old-age benefits: payable to qualifying workers regardless of where they reside, via bank transfer. Proof of identity and bank account details are required. NPI benefits: similarly payable abroad for qualifying recipients.
Pension Contribution Refund on Leaving Taiwan
Foreign workers who permanently depart Taiwan are eligible to withdraw their entire Labour Pension (LP) individual account balance (including accrued investment returns) regardless of how long they worked. There is no minimum service period for LP withdrawal. Workers with Labour Insurance coverage of 1+ year may also claim the LI old-age lump-sum benefit if they meet the applicable age and departure conditions.
Workers who plan to return to Taiwan and resume employment should generally leave the LP account intact — early withdrawal is only for those permanently departing. Workers without any LP contributions (e.g., informal/undocumented workers) have no entitlement.
LP withdrawal on permanent departure: no minimum waiting period — the account balance is immediately accessible upon verified permanent departure. BLI processes payments within approximately 30–60 business days of application. LI old-age lump sum: payable at any time after meeting conditions (1+ year insurance); departure from Taiwan is not a standalone trigger — age requirements still apply for standard old-age benefits.
Labour Pension (LP) individual account: the full accumulated balance of employer mandatory contributions (6% per year) plus any employee voluntary contributions and accrued investment returns — this is the worker's own portable account and is always refunded in full. Labour Insurance (LI): this is insurance, not a savings account — entitlement is benefit-based. A worker with 1+ LI year receives an old-age lump-sum calculated on insured salary history; a worker with 15+ LI years may choose a monthly pension. LI contributions themselves are not directly refunded.
Apply directly to the Bureau of Labor Insurance (BLI) at bli.gov.tw or in person at a BLI service centre. Required documents: passport, ARC/departure documents, bank account details (domestic or foreign), employment history, and the relevant application forms. Keep a Taiwan bank account active until funds are received — closing accounts prematurely creates payment complications.
Obtain written confirmation of your LP balance before leaving Taiwan. Closing ARC, bank accounts, or Taiwanese phone numbers before the claim is settled can delay payment significantly. If your passport number changed during your time in Taiwan (e.g., on renewal), bring both old and new passports. Authorise a trusted representative if you may need follow-up from abroad.
International Totalization Agreements
Taiwan has no broad network of social security totalization agreements comparable to EU/EEA or US systems. Taiwan's limited diplomatic recognition means bilateral social security treaties are rare. Home-country pension systems will generally not credit Taiwan working years. Workers from the USA, UK, EU countries, Australia, and Canada should not assume their Taiwan LI years count towards home-country pension entitlement — verify directly with your home-country pension authority. Check the current status of any agreement at bli.gov.tw.
Private Pension Vehicles
Labour Pension voluntary contribution (employee top-up)
勞工退休金自願提繳Eligible employees covered by the Labour Pension Act who want to supplement their employer-funded 6% with additional personal contributions.
No direct subsidy, but voluntary contributions receive a Taiwan income tax deduction.
Employee voluntary contributions (up to 6% of monthly wage) are deductible from Taiwan personal income tax in the year contributed. Confirm exact treatment with a Taiwan CPA.
Up to 6% of monthly wage on a voluntary basis (in addition to the mandatory employer 6%).
Fully portable — part of the individual LP account, fully owned by the worker. Can be withdrawn on permanent departure alongside the mandatory employer contributions.
Only available if you are currently employed and covered by the Labour Pension Act. Good option for long-term residents; less useful for those who may leave Taiwan soon, as claims require processing time. Understand withdrawal rules before contributing large amounts.
Home-country retirement accounts
Foreign pension / IRA / RRSP / SIPP / Superannuation etc.Expats maintaining long-term pension ties to their home country.
Home-country rules only.
Depends on home country rules and Taiwan tax residency status — seek specialist cross-border tax advice.
Home-country limits apply.
Usually portable to Taiwan for receipt of payments; tax treatment of contributions while Taiwan-resident can be complex.
Maintaining home-country pension contributions (e.g., voluntary UK NI, US IRA) is typically the most important retirement planning action for expats in Taiwan. Avoid inadvertently triggering home-country tax problems. US persons should be aware of PFIC rules for Taiwan mutual funds.
Taiwan brokerage / securities investments
證券投資Long-term Taiwan residents with investment experience and appropriate risk tolerance.
None.
Taiwan has no capital gains tax on securities sold on the Taiwan Stock Exchange (as of 2026). Dividends are subject to Taiwan income tax for residents. Foreign tax may also apply depending on nationality.
No pension cap — treated as general investment, not a pension product.
Broker-dependent. Securities can generally be liquidated and funds remitted abroad, though broker policies on foreign-resident accounts vary.
US persons and other tax-sensitive nationals need specialist advice due to FBAR, PFIC, and other cross-border reporting obligations.
Commercial annuity / life insurance products
年金保險 / 壽險Taiwan residents wanting insurance-linked savings with a retirement income component.
None or limited.
Depends on product structure and tax jurisdiction.
Product-dependent.
Can be poor if you leave Taiwan — watch surrender charges, currency risk, and whether the insurer will service a foreign address.
Products vary widely. Ensure the insurer will maintain the policy and make payments to a foreign address before purchasing. Surrender charges in early years can be substantial.
Early Retirement Options
Early retirement in Taiwan is primarily funded through the LP individual account (accessible from age 60), home-country pensions, private investments, and business or rental income. Taiwan's relatively low cost of living and accessible private healthcare can make earlier retirement viable. However, Labour Insurance old-age pension benefits only become payable from age 60–65 depending on birth year — those retiring before 60 will have a bridge funding gap. Healthcare costs should be planned separately as NHI coverage may not continue after leaving employment.
Pension Gap Warning
Foreign professionals often earn competitive salaries in Taiwan but may build limited total retirement assets if they move frequently. Key risks: (1) LP account accumulates only 6% of salary per year from employer — after 10 years this may cover a modest lump sum but is unlikely to fund a full retirement; (2) LI benefits require 15 years of coverage for a monthly pension — most expats will only qualify for a lump sum; (3) no totalization agreements mean Taiwan years are invisible to home-country pension systems; (4) short-term workers who close Taiwan accounts and cancel ARC before claiming LP can face significant administrative difficulties. Track employer LP contributions annually via bli.gov.tw and build supplementary private savings.
Useful Links
Retirement & Pension
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