2. Retirement: The Age Old Question GERN 474 Presenters: Gail Francis, Carmen Harrison, Michael Nguyen, Wendy Nguyen, Kimberly Sasaki

3. The Age Old Question Where should the primary responsibility of pension and retirement derive from? Society and Government or The Individual vs.

4. Retirement: Who is Responsible? Society and Government The Individual Don’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: 3

5. Don’t Fix What Isn’t Broken Everyone benefits…or do they? Who is covered? Government and school workers! Farmers! Housewives! Who is not covered? People below the poverty line…but…

6. 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)

7. Let’s Talk Investing Giving in to collect! Conservative funding helped in the long run! Government to the rescue!

8. The Farmers and NPI Disadvantanged prior to NPI After NPI, health insurance provided. 94% of farmers saved!

9. Social Implications for government support Insurance for “old age support”. Majority want to keep elders at home. People want to help!

10. Social Implications for government support, part 2 Independence! Incentives help!

11. Economic Security Individuals should be more proactive Plan for their retirement Little aid from society and government pension. 10

12. 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. 11

13. Everyone’s Responsibility Under 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 12

14. Everyone’s Responsibility Social security will be ok if you only raise the retirement age raise taxes What if we keep present system in U.S. Taxes would have to be cut. 13

15. Individual responsibility Economy 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. 14

16. 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 15

17. Individual responsibility Current 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 16

18. Advantages To Individuals Preparing for Future Benefits for the individual: U.S. and Taiwan The exact future is UNKNOWN Security in retirement savings You choose how to spend money 17

19. 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 deferment 401k 18

20. Lets Learn From Mistakes Many countries implementing individual program China Germany: pay as you go U.S. 19

21. Individual Citations: 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=JnNpdGU9ZWhvc3Qt bGl2ZQ%3d%3d#db=27h&AN=35156896 http://web.ebscohost.com.mcc1.library.csulb.edu/ehost/detail ?vid=7&hid=13&sid=7dac8903-6896-4a71-8318- 648c4484b987%40sessionmgr13&bdata=JnNpdGU9ZWhvc3Qt bGl2ZQ%3d%3d#db=27h&AN=35156896 20

22. Individual Citations: 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/ehos t/detail?vid=31&hid=13&sid=7dac8903-6896-4a71- 8318- 648c4484b987%40sessionmgr13&bdata=JnNpdGU9Z Whvc3QtbGl2ZQ%3d%3d#db=a9h&AN=46973035 http://web.ebscohost.com.mcc1.library.csulb.edu/ehos t/detail?vid=31&hid=13&sid=7dac8903-6896-4a71- 8318- 648c4484b987%40sessionmgr13&bdata=JnNpdGU9Z Whvc3QtbGl2ZQ%3d%3d#db=a9h&AN=46973035 21

23. 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

24. 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