The “Taiwan Future Account” (TFA) bill, jointly promoted by the Chinese Nationalist Party (KMT) and the Taiwan People’s Party, proposes that the government establish an investment account for every child aged 12 or younger. The government would make an initial deposit of NT$50,000 for each child with a valid household registration, with an additional NT$10,000 contributed annually, alongside contributions from parents and their employers.
Designed as a policy to make preparations for future generations, its appeal is evident. However, there are several key concerns regarding the feasibility of the policy’s overall design in terms of long-term planning and intergenerational impact.
The first is fiscal. A NT$50,000 initial deposit might appear modest, but even as the birthrate declines and the number of children decreases, continuously budgeting for all eligible children every year would still constitute a substantial long-term financial commitment. Under the pressures of an aging population, declining birthrates and social welfare expenditures, it is unclear whether the government has clearly assessed funding limits, potential crowding-out effects or fiscal sustainability in the medium to long term.
Second is the nature of employer contributions. Under the law, employers’ responsibilities are based on labor contracts and work-related obligations, and do not involve financial planning for their employees’ children. If employer contributions are not mandated, but simply encouraged, their actual impact is likely to be negligible. If they become a statutory obligation, the cost could impact small and medium-sized businesses’ and traditional industries’ management, operations and staffing capacities.
A more reasonable approach could be to offer incentives for students to invest their allowances or New Year’s gift money into the account, which would also teach them about financial planning and help them develop saving habits by watching their assets grow — a skill that textbooks cannot teach.
Third is the stock market’s inherent investment risks. Long-term returns depend on economic growth and social stability, and history shows that there are periods of prolonged stagnation or market crashes. Under the TFA, would the government ultimately assume liability if the account suffers losses? The implications of financial risk and public trust in the policy cannot be overlooked.
Finally, the fund’s ownership and usage rights after the child turns 18 are still in dispute. If it belongs to parents or guardians, it would defeat the fund’s original purpose, but if it belongs to the child, a lack of mature decisionmaking skills at 18 could trigger clashes within the family. To reduce the potential for family disputes, the legislation should clearly specify whether the account is to be managed by the government or another designated authority, and at what ages and for what purposes withdrawals are permitted. It should prohibit parents and minors from independently accessing the account to prevent misappropriation or abuse.
The challenges ahead for the bill are not just in the technical details, but broader questions related to fiscal policy, industry, finance and family institutions. Ultimately, the value of public policy is never just about good intentions; it is about careful risk assessment, clear planning and sound legislation. Without proper deliberation, well-intended legislation might, due to poor planning, give rise to systemic problems that would be difficult to resolve in the future. For this reason, the legislative process must embrace open discussion as much as possible, avoid oversights and ensure comprehensive policy planning to secure the viability of this safeguard for future generations.
Dino Wei is an engineer.
Translated by Gilda Knox Streader
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