Taiwan’s labor force participation rate among people aged 65 or older was only 9.9 percent for 2023 — far lower than in other advanced countries, Ministry of Labor data showed. The rate is 38.3 percent in South Korea, 25.7 percent in Japan and 31.5 percent in Singapore. On the surface, it might look good that more older adults in Taiwan can retire, but in reality, it reflects policies that make it difficult for elderly people to participate in the labor market.
Most workplaces lack age-friendly environments, and few offer retraining programs or flexible job arrangements for employees older than 55. As a result, experienced workers often find themselves marginalized in the later stages of their careers.
Taiwan’s social security system is built on the assumption that people exit the labor market upon reaching retirement age. The labor insurance pension system even encourages early withdrawal. For older Taiwanese who wish to continue contributing, the system provides no support — only obstacles.
Cultural attitudes also affect the labor market. Retirement is widely seen as a sign that a person can enjoy their life in peace, and families often expect older family members to focus on leisure or caring for grandchildren, disregarding the social connections and psychological achievements that work can bring.
The supply of older adults in the workforce has been suppressed as a result, and society as a whole lacks a positive view of elderly re-employment.
By contrast, Japan in 2013 implemented the Act on Stabilization of Employment of Elderly Persons, which requires companies to offer re-employment and develop policies that enable retirees to return to the workforce as consultants, part-time employees or skill transfer agents. The approach not only slows the decline of the labor force, but also allows older adults to share their valuable experience.
Taiwan is about to become a “super-aged” society, and its young labor force is steadily shrinking. If the issues surrounding hiring older adults are not addressed, labor shortages would only worsen.
Government and industry must work together to consider how to empower those aged 65 or older to freely choose whether to rejoin the labor market by easing regulations, reshaping workplace cultures and promoting skill retraining programs.
Retirement should not mark the end of a person’s career, but rather the beginning of a new stage of life defined by freedom of choice. It does not have to mean stepping away — rather, it can mean continuing to contribute in a different way. When society allows everyone to continue functioning according to their abilities and passions, old age can also become a source of productivity.
Dino Wei is an engineer.
Translated by Kyra Gustavsen
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