How Much Can You Receive from National Pension After Retirement? Paying for 40 Years Yields Up to NT$10,974 Monthly! Detailed Breakdown of Payouts by Contribution Years and A/B Formula Calculations Revealed

Individuals aged 25 to under 65 who are unemployed, changing jobs, or full-time homemakers without coverage under labor insurance, public service insurance, military insurance, or farmers' insurance will receive a National Pension payment notice. While some citizens jokingly refer to this system as an 'unemployment expense,' it is legally designed with the government bearing ultimate financial responsibility, providing benefits for childbirth, disability, funeral expenses, and elderly livelihood security.

Starting January 1, 2026, the monthly insured amount for National Pension has been adjusted to NT$21,103. Furthermore, on January 22, 2026, the Executive Yuan passed a partial amendment draft to the National Pension Act, proposing to raise the basic guaranteed amount under Formula A of old-age pensions to NT$5,000. The draft has been submitted to the Legislative Yuan for review and will officially take effect after passing all three readings and completing budget procedures. This will significantly enhance retirement benefits for individuals with short-to-medium contribution periods.

What is the difference between Formula A and Formula B? How much can you receive if you contribute for 5 to 40 years?

When an insured person applies for an old-age pension upon turning 65, the Labor Insurance Bureau automatically calculates both Formula A and Formula B and disburses the higher amount.

Using the Executive Yuan's draft figures—NT$5,000 base guarantee and NT$21,103 monthly insured amount—the formulas are:

- Formula A: (Monthly Insured Amount × Contribution Years × 0.65%) + NT$5,000 - Formula B: Monthly Insured Amount × Contribution Years × 1.3%

The calculated results by contribution years are as follows:

- 5 years: Formula A: NT$5,686; Formula B: NT$1,372 → Choose Formula A - 10 years: Formula A: NT$6,372; Formula B: NT$2,743 → Choose Formula A - 15 years: Formula A: NT$7,058; Formula B: NT$4,115 → Choose Formula A - 20 years: Formula A: NT$7,743; Formula B: NT$5,487 → Choose Formula A - 25 years: Formula A: NT$8,429; Formula B: NT$6,858 → Choose Formula A - 30 years: Formula A: NT$9,115; Formula B: NT$8,230 → Choose Formula A - 40 years: Formula A: NT$10,487; Formula B: NT$10,974 → Choose Formula B

Formula A yields higher benefits for contribution periods between 5 and 30 years. However, at 40 years of contributions, Formula B surpasses Formula A with NT$10,974 versus NT$10,487, becoming the highest payout option.

Why can't some people choose Formula A? What are the two major relaxations in the 2026 amendment?

Although Formula A offers a floor-level advantage, regulations stipulate that individuals with unpaid premiums not counted toward eligibility, those with outstanding arrears within one year before the qualifying event, recipients of other social insurance old-age benefits, or those currently receiving disability living allowances are only eligible for disbursement under Formula B.

In addition to raising the base amount, the amendment draft includes two key relaxation measures:

- Relaxation of asset limits: The real estate cap (e.g., primary residence) increases dramatically from NT$5 million to NT$10.25 million, and the annual personal income ceiling rises from NT$500,000 to NT$600,000. This prevents seniors from being excluded due to homeownership. - Removal of spousal penalties: Eliminates fines imposed on spouses who fail to pay premiums on behalf of their partners, resolving past criticisms of penalizing marriage. These changes comprehensively strengthen elderly livelihood protection for low-income and non-permanently employed individuals.