Solutions
To combat the rise in elderly and decline in labor force Taiwan needs to increase its fertility rates. A new generation of workers would be able to alleviate financial pressure that the elderly cause. Taiwanese government has already taken action by providing economic incentives to new starting families. New parents will get tax breaks and financial support per child (China Times). The government has also made this issue public through advertisements, in hope to raise fertility rates among citizens.
The nearly 4 million citizens comprising of self-employed workers, farmers, housewives and disabled persons have no form of reasonable priced insurance (National Policy Foundation of Taiwan). Government plans, pensions and welfare, have been more open towards those who are not covered by governmental insurance, however more focus is needed to completely support certain elderly in Taiwan.
A small baby boom would increase Taiwan's work force in 15-20 years. A short term solution would be increasing the current retirement age from 65 years old to 70. This would combat the decline in workers by increasing the total amount of workers. This is a very short term solution as the rate of growth would not change, however it gives buffer room for the economy.