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Retirement Gap

This meta-tool combines three layers of Taiwan retirement planning: the 4% rule total requirement, expected Labor Insurance + Labor Pension monthly income, and your personal investment projection. It shows where you stand and how much more to save monthly.

Inputs

We inflate this to the nominal amount at retirement using the inflation rate.

Estimate your monthly amount first with the Labor Insurance & Labor Pension calculatorthen fill it in.

Personal investing

Retirement gap
Retirement gap (personal investing portion)
On track
Annual expense at retirement (inflated)NT$1.09M
Total assets needed (÷ 4% withdrawal rate)NT$27.17M
− Pension annuity equivalent assetNT$9M
Personal investing targetNT$18.17M
Projected personal assets at retirementNT$21.11M
How it is computed
  • Total need = annual expense × (1 + inflation)^years ÷ withdrawal rate
  • Pension equivalent = annual pension ÷ withdrawal rate (asset-equivalent framing)
  • Personal projection = current assets compounded + future value of monthly contributions
  • Gap = target − projected

This tool combines Labor Insurance + Labor Pension + personal investing + 4% rule concepts. Outputs are math estimates only; actual market returns, inflation, and pension rules all change over time. Not retirement advice.

Use the Labor Pension Calculator first to estimate your expected monthly pension, then plug the number in here.

Frequently asked

How is the retirement gap calculated?
Three layers: (1) target assets via the 4% rule (annual expense × 25); (2) convert expected Labor Insurance + Labor Pension monthly income to an asset-equivalent (monthly × 12 ÷ withdrawal rate); (3) add personal investment projections. If the sum is below target, that's the gap. The tool shows the extra monthly contribution needed to close it.
How much will Labor Insurance + Labor Pension cover?
A typical Taiwanese employee's combined monthly pension lands at NT$20-40K, equivalent to NT$6-12M in target assets at a 4% withdrawal rate. That covers basic living expenses; sustaining mid-to-upper lifestyle requires personal investments to close the gap.
I'm still young — do I need to run this?
Earlier is better. Computing the gap at 25-35 gives you 25-35 years of compounding to close it. NT$10K/month starting at 30 beats NT$20K/month starting at 40 because compounding has more years to work. You need a target before you can size the monthly contribution.
If the gap is large, how do I close it?
Three levers: (1) raise monthly contributions; (2) delay retirement (each 5-year delay adds 5 years of compounding and removes 5 years of withdrawals — double impact); (3) lower target retirement spending. Delaying is most powerful but costs working years. Run all three; pick the least painful blend.
How should I model possible Labor Insurance reform?
Conservative approach: discount Labor Insurance monthly by 20-30% (i.e., NT$20K → NT$14-16K). Labor Pension is an individual account and isn't affected by reform — count it in full. For a worst-case stress test, set Labor Insurance to zero and rely only on Labor Pension + personal savings.
Does the tool store my data?
No. All math runs locally in your browser. Nothing is uploaded.

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