Retirement: The Age Old Question

GERN 474Presenters:

Gail Francis, Carmen Harrison, Michael Nguyen, Wendy Nguyen, Kimberly Sasaki

The Age Old Question

Where should the primary responsibility of pension and retirement derive from?

Society and Government or The Individual

vs.

Retirement: Who is Responsible?Society and Government

The IndividualDon’t fix what isn’t

broken

Taiwan’s pension management

Pension talk

Social implications

Counter-argument

Potential economic impact

Advantages to individuals preparing for the future:

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Don’t Fix What Isn’t BrokenEveryone benefits…or do they?

Who is covered?

Government and school workers!

Farmers!

Housewives!

Who is not covered?

People below the poverty line…but…

Let’s Face It: Society and Government Should Help

Pensions are secure and managed conservatively!

Farmers are covered! (Trust me, this is a big deal!)

The NPI (National Pension Insurance)

Let’s Talk Investing

Giving in to collect!

Conservative funding helped in the long run!

Government to the rescue!

The Farmers and NPI

Disadvantanged prior to NPI

After NPI, health insurance provided.

94% of farmers saved!

Social Implications for government support

Insurance for “old age support”.

Majority want to keep elders at home.

People want to help!

Social Implications for government support, part 2

Independence!

Incentives help!

Economic SecurityIndividuals should be more proactive

Plan for their retirement

Little aid from society and government pension.

10

Everyone’s Responsibility:Don’t Fix What Isn’t Broken

Do State Benefits Impact on Intergenerational Family Support? The Case of Taiwan. The family still provides security for elderly.

In Taiwan it is already the present state.

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Everyone’s ResponsibilityUnder the NPI, people work 10 to 40 years for

pension

System in U.S.: get what you contribute

Not fair Taiwan residents who paid into system

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Everyone’s ResponsibilitySocial security will be ok if

you only raise the retirement ageraise taxes

What if we keep present system in U.S.Taxes would have to be cut.

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Individual responsibilityEconomy would be better off

Current economic situation in U.S. - Today the National Debt is over: $9 billion.

- That number is 4,700 times larger than it was in 1913.

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Individual responsibility

Current economic situation in U.S.

- The nation is adding another $1 trillion to that total every 15 months.

- National Debt is growing.

Government running out of money 30 to 40 years

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Individual responsibilityCurrent economic situation in Taiwan

The public pension system in Taiwan: Equity issues within and between systems.Young system is facing financial imbalance

Current economic situation around the globe similar

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Advantages To Individuals Preparing for Future

Benefits for the individual: U.S. and TaiwanThe exact future is UNKNOWN

Security in retirement savings

You choose how to spend money

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Lets Learn From Mistakes

No time for pretending it is not realistic

The solutions are out there

Money does not have to come straight from pockets

Payment deferment401k

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Lets Learn From Mistakes Many countries implementing individual

program

China

Germany: pay as you go

U.S.

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IndividualCitations:Do State Benefits Impact on

Intergenerational Family Support? The Case of Taiwan.

The family still provides security for elderly. Downloaded from:

http://web.ebscohost.com.mcc1.library.csulb.edu/ehost/detail?vid=7&hid=13&sid=7dac8903-6896-4a71-8318-648c4484b987%40sessionmgr13&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=27h&AN=35156896

 

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IndividualCitations:The public pension system in Taiwan:

Equity issues within and between systems.Young system is facing financial imbalance

Downloaded from: http://web.ebscohost.com.mcc1.library.csulb.edu/ehost/detail?vid=31&hid=13&sid=7dac8903-6896-4a71-8318-648c4484b987%40sessionmgr13&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=a9h&AN=46973035

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Ask the expert!

Dr. Tsuann Kuo says:

A 1/3 of population depends on pension  

The rest savings or government

Thinks this figure will change dramatically

Ask the expert!, part 2

Dr. Tsuann Kuo also says:

Taiwan's pension is at a crossroad

Baby boomers doubtful about pension system 

10% not contributing to pension system  They choose to give up their rights