The self-retirement withdrawal rate exceeds 20% (provided by the Ministry of Labor)
[Reporter Li Lianghui/Taipei Report] The craze for self-retirement pensions continues to heat up, and the number of workers voluntarily withdrawing their pensions continues to rise. According to the latest statistics from the Labor Insurance Bureau of the Ministry of Labor, as of July 2015, the total number of people who had withdrawn from labor was 7.866 million, of which the total number of self-imposed withdrawals had exceeded 1.583 million, with a self-withdrawal rate of 20.13%, which is equivalent to 1 out of every 5 workers participating in self-withdrawal. Among them, senior workers over 50 years old had a self-withdrawal rate of 32.38%, which was the most popular.
The Labor Insurance Bureau pointed out that in addition to the fixed monthly contribution of 6% of wages by employers in accordance with the law, workers themselves can also voluntarily contribute flexibly to pensions within the range of 6% of monthly wages according to personal financial planning. In recent years, as people have paid more and more attention to retirement financial planning, coupled with the government's vigorous publicity and stable fund income, the number of self-retirement funds has continued to rise. Statistics show that the number of self-collections increased to more than 1.583 million in July 2015, an increase of 221,888 from 2014, with a growth rate of 16.29%. Compared with the full-year growth rate of 13.99% in 2014, it shows that the growth rate in the number of self-collections in the first seven months of this year has been higher than the level of last year.
Please read on...
Further analysis of the self-importation situation of each age group shows that all age groups are showing a trend of expanding participation. Among them, the number of workers over 50 years old increased by 18.20%, those between 30 and 49 years old increased by 14.83%, and those under 29 years old increased by 14.79%. The Labor Insurance Bureau pointed out that as senior workers over 50 years old approach retirement, their willingness to voluntarily accumulate pensions has greatly increased. The self-withdrawal rate ranks highest among all age groups, as high as 32.38%, which is equivalent to 1 out of every 3 workers over 50 years old.
It is worth noting that the younger generation’s concept of retirement planning is undergoing a significant change. The growth rate of the number of young workers under the age of 29 who self-fund has increased significantly compared with the past year, which means that the younger generation has increasingly adopted the financial management concept of "starting early and making full use of time to compound interest".
The Labor Insurance Bureau emphasized that in addition to enjoying tax-saving benefits within the range of 6% per month for self-withdrawal pensions, the accumulated income is guaranteed to be no less than the two-year fixed deposit interest rate. Coupled with the stable long-term returns of the new labor retirement fund, the average return rate in the past 10 years has been 8.7%, and the average return rate in the past 5 years has been 10.28%. As of July 2015, the performance has been as high as 24.58%. The sooner you start withdrawing money, the more time you can use to compound interest, accelerate the accumulation of your personal account, and significantly increase your future retirement life security.
The Labor Insurance Bureau reminds that if workers and appointed workers want to voluntarily contribute to their pensions, they can express their willingness to voluntarily contribute to their pensions to their employer or appointing unit. The employer or appointing unit shall declare and withhold the payment from their wages (income from business execution); employers who actually engage in labor may declare and pay the pension at the same time through public institutions; starting from September 1, 2015, self-employed workers can also apply online at the Labor Insurance Bureau’s e-service system and pay by agreed transfer method.
Grasp the economic pulse with one hand. Click here to subscribe to Free Finance Youtube Channel
