What Happens If You Don't Pay National Pension? Can You Still Receive Old-Age Benefits at 65 with Unpaid Premiums? Two Real-Life Scenarios and Benefit Rules Explained

The National Pension Insurance (NPI) was launched in 2008 and has now been in operation for nearly 20 years. Ongoing discussions include concerns such as 'having to pay high premiums even when unemployed' and 'what happens if I don't pay my National Pension premiums.' In May 2026, a case emerged where a 65-year-old citizen who had paid premiums regularly passed away, yet might not receive any pension benefits. So, if someone has unpaid National Pension premiums, can they still receive old-age pension benefits upon turning 65?

On the 24th, the Labor Insurance Bureau (LIB) clarified two scenarios regarding 'unpaid premium periods' via its Facebook page. It emphasized that as long as National Pension premiums are paid on time, individuals are eligible to receive old-age pension benefits at age 65, regardless of their total NPI contribution years.

Can you still receive old-age pension with unpaid premiums? Does non-payment affect the benefit amount?

Many citizens worry whether past non-payment of National Pension premiums disqualifies them from receiving benefits or reduces the payout. The LIB explains that anyone who has ever participated in NPI is eligible for old-age pension upon turning 65. However, if there are outstanding premiums, they must be fully paid or arranged through an installment plan before benefits can be claimed. The two scenarios are:

Unpaid period under 10 years: Benefits can be claimed after back-payment or setting up an installment plan. Unpaid period over 10 years: The back-payment deadline has passed. That period will not count toward insurance years, and the pension will be calculated using the 'B-type formula'.

The LIB further notes that if unpaid premiums or interest exist between ages 64 and 65, and the individual fails to pay even after a written notice and deadline from the LIB, the first three months of old-age pension will be calculated using the 'B-type formula'. Citizens are urged to promptly request a new payment slip and settle any arrears to avoid affecting their benefits.

What is the B-type calculation?

B-type formula: Monthly old-age pension = Monthly insured amount × Insurance years × 1.3%

What happens if you don't pay National Pension? Consequences worsen after 10 years

Taiwan's 'National Pension Insurance' aims to provide a basic social safety net for citizens aged 25 to under 65 who are not covered by Labor Insurance, Farmers' Insurance, Civil Servants' Insurance, or Military Insurance—such as homemakers, unemployed individuals, and students. In early 2026, the Executive Yuan proposed an amendment to the National Pension Act, marking the largest reform in recent years. Changes to premium amounts and benefit standards are expected to affect over 2.81 million insured individuals and 1.76 million beneficiaries nationwide.

Many citizens also wonder: what happens if you don't pay National Pension premiums? While there is no mandatory fine, the consequences of long-term non-payment are serious:

Years not counted: Unpaid periods do not count toward insurance years. 10-year back-payment limit: After 10 years, back-payment is no longer allowed, and those years are permanently excluded from insurance records. Impact on pension calculation: With over 10 years of arrears, the more favorable 'A-type' (floor-type) calculation is no longer available; only the lower 'B-type' applies. Suspension of benefits: The LIB will temporarily withhold all benefit disbursements until arrears are cleared.

What if someone dies at 65 after paying premiums? LIB switches to 'automatic eligibility review'

As noted above, National Pension is a mandatory enrollment and withdrawal social insurance. While no fines are imposed, back-payment is allowed within 10 years. After that, interest is added, and beyond 10 years, no back-payment or year counting is permitted, resulting in less favorable pension calculations. Long-term non-payment carries serious consequences.

Recently, public criticism arose when an elderly person who had paid premiums for years passed away shortly after turning 65. Families expected to claim three benefits—old-age pension, funeral allowance, and survivor pension—but were told they might receive nothing. This sparked outrage, with claims like 'a lifetime of payments amounted to zero' and 'it feels like a scam.' Following public backlash, the Ministry of Health and Welfare announced on May 19 that the LIB will now automatically review old-age pension eligibility. Those who qualify will receive benefits automatically.