How to Use Growth Allowance? FSC Offers Assistance Based on TISA Experience

(CNA, Taipei, May 21, by reporter Su Su-yun) President Lai Ching-te has proposed a monthly growth allowance of NT$5,000 for each person aged 0 to 18, drawing attention to the policy plan for those aged 6 to 18, where half would be saved in a 'future fund' and half disbursed as cash. The Financial Supervisory Commission (FSC) stated that if the final plan deems it necessary to link with the Taiwan Individual Saving Account (TISA) mechanism, the FSC can provide assistance based on this experience, helping families with children select fund targets from an asset accumulation perspective. During his 2nd-anniversary-of-governance speech yesterday, President Lai announced a "New Strategy for Taiwan's Population Policy." To address the declining birth rate, the government has decided to provide a growth allowance of NT$5,000 per month for everyone from 0 to 18. The Ministry of Health and Welfare said that with the current childcare allowance for 0-2 year olds starting at NT$5,000, adding the NT$5,000 cash growth allowance will total at least NT$10,000. For those aged 6 to 18, half will be saved in a future fund, and half will be disbursed as cash. Regarding the use of money in the future fund, Huang Chung-hao, Deputy Director-General of the FSC's Securities and Futures Bureau, explained at a routine press conference that the Ministry of Health and Welfare currently has the "Act for the Establishment of Education and Development Accounts for Children and Youth," which helps children and youth accumulate funds, primarily by earning interest in banks, and it needs to be seen if additional investment is required. Huang pointed out that the government's latest policy will further expand the age range. As for the amount and use of funds after expansion, once the responsible ministry and funding framework are determined, the FSC can, based on the current implementation of TISA, assist families with children in selecting fund targets from an asset accumulation viewpoint. The FSC emphasized that it still depends on the final announced plan. Huang noted that if the use of funds needs to be paired with TISA, the FSC will assist based on its experience. When asked if linking with TISA funds would lead to new products for the youth demographic, Huang said that the current TISA has a management committee that selects products. Individuals can then choose products based on their needs, whether conservative or aggressive, with the main purpose being to serve as a third pillar for retirement. He further explained that in the future, depending on whether the responsible ministry references this model, the FSC can assist in selecting targets and designing products to match needs. In other words, the product pool for a youth version of TISA might differ from the current TISA product pool. (Editor: Huang Kuo-lun) 1150521