Taiwan Launches Child Investment Accounts, Tax Incentives to Aid Wealth Management

On May 27, 2026, Taiwan unveiled an 18-measure policy package including government-subsidized investment accounts for minors aged 6 to 18, a move likely to boost the island's wealth management industry. President Lai Ching-te said the program aims to reverse a plummeting birth rate. Under the plan, families will receive a NT$5,000 ($154) monthly child allowance for those under 18. For children between 6 and 18, NT$2,500 will be automatically funneled into professionally managed investment accounts, with a guaranteed minimum return tied to a two-year time deposit rate. The government will also match savings for disadvantaged children by up to NT$1,250 per month. The package includes tax breaks for families with children, extended parental leave, and fertility subsidies. Lai estimated the initial cost at NT$380 billion ($12.1 billion), about 1% of Taiwan's GDP and comparable to South Korea's demographic efforts. Taiwan's fertility rate fell to 0.86 in 2024, one of the world's lowest. The rollout comes ahead of local elections in November.