Delaying retirement has become an irreversible global trend. Denmark in May last year passed a landmark retirement reform bill, planning to lift the statutory retirement age to 70 by 2040 from 67, which would make it the highest in Europe.
Germany is close behind, aiming to reach the 67-year-old retirement threshold by 2031, while the UK is considering an increase to 68 within the next decade.
At first glance, these measures appear to simply extend the duration of labor participation. In reality, they are a response to mounting pressure on pension systems caused by aging populations and declining birthrates.
As the Danish government has emphasized, delaying retirement can extend the labor contribution period, shorten the payout duration, help improve public finances and increase overall labor supply.
While Europe is undergoing a structural transformation to adapt to aging societies, Taiwan — one of the fastest-aging countries in Asia — still lacks a comprehensive roadmap and support system for retirement reform, raising serious concerns.
According to National Development Council estimates, Taiwan is set to become a “super-aged society” this year, defined as one in five people aged 65 or older. Data from the Directorate-General of Budget, Accounting and Statistics show that the average age of workers has risen to 40.4, indicative of a highly mature labor market.
Taiwan’s statutory retirement age is 65. In many sectors, due to organizational culture and promotion systems, workers effectively begin exiting the workforce between 55 and 60 — creating an irrational norm of early retirement.
As the demographic dividend fades and labor shortages widen, maintaining outdated retirement policies would only worsen the strain on the labor insurance system and deepen workforce gaps across industries.
Taiwan urgently needs to develop a flexible and sustainable retirement framework to ensure workforce planning success and fiscal stability in an aging society.
However, delaying retirement should not be reduced to a simple policy slogan about working longer. It must involve a comprehensive reassessment of labor market structures.
Sectors such as construction and hospitality — which have long suffered from labor shortages — are characterized as “3D sectors”: dirty, dangerous and demanding. Those jobs are often labor-intensive, offer low wages and pose high risks, so are inherently unfriendly to older workers.
Without workplace redesigns and flexible working arrangements, it would be difficult to retain or rehire senior workers, even if a retirement reform policy is in place.
Conversely, knowledge-intensive and high-tech sectors such as information technology, healthcare and semiconductors are better suited to leveraging the experience and value of older workers through retraining and job redesign.
The delayed retirement policy should be tailored to industry characteristics. Exit subsidies could be designed for high-risk industries, while technical sectors could benefit from skill-upgrading programs and assessment systems for age-friendly workplaces.
Moreover, postponing retirement should not be viewed as crowding out opportunities for younger generations. Instead, it should aim to redefine intergenerational division of labor.
Modern workplaces are shifting from vertical promotion structures to horizontal collaboration. Older workers who transition into mentoring, training or advisory roles do not compete with younger employees; rather, they enhance knowledge transfer and improve internal collaboration mechanisms.
Japan’s policy of expansion in senior employment allows people aged 65 or older to assume mentoring positions, using their experience to support the development of younger employees, thus improving overall productivity and job satisfaction.
Taiwan could consider adopting a step-by-step retirement system that combines adjustments in working hours, salary conversion and role transition. That would allow older workers to gradually modify the intensity and nature of their work at different life stages, thereby extending their employment lifecycle.
Ultimately, delayed retirement is not merely a policy response to demographic shifts — it is a deeper reform involving institutional restructuring, generational collaboration and labor market transformation. As Western countries begin taking crucial steps in this direction, Taiwan must act swiftly to establish a scientifically grounded, transparent and flexible retirement adjustment system.
Only through diversified employment support measures and robust career support for older workers could Taiwan maintain social vitality and economic resilience amid the aging wave, and truly realize a society in which elderly people remain active contributors and capable workers are properly employed.
Chen Jie-an is a legal specialist for a technology corporation.
Translated by Lin Lee-kai
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