Total fertility rate in Taiwan 1960-2030

In 2021, the average total fertility rate in Taiwan ranged at around 0.98 children per woman over lifetime. This extremely low figure is not expected to increase significantly over the coming years.

Taiwan’s demographic development

Taiwan was once known for its strong population growth. After the retreat of the Republican government to the island in 1949, the population grew quickly. However, during Taiwan’s rapid economic development thereafter, the fertility rate dropped substantially. This drastic change occurred in most East Asian countries as well, of which many have some of the lowest fertility rates in the world today. As a result, populations in many East Asian regions are already shrinking or are expected to do so soon.

In Taiwan, population decreased in 2020 for the first time, and the declining trend is expected to accelerate in the years ahead. At the same time, life expectancy has increased considerably, and Taiwan’s population is now aging at fast pace, posing a huge challenge to the island’s social security net.

Addressing challenges of an aging society

Most east Asian countries could, until recently, afford generous public pensions and health care systems, but now need to adjust to their changing reality. Besides providing incentives to raise children, the Taiwanese government also tries to attract more immigrants by lowering requirements for permanent residency. As both strategies have been met with limited success, the focus remains on reforming the pension system. This is being done mainly by raising the retirement age, promoting late-age employment, increasing pension contributions, and lowering pension payments.