The world’s first integrated National Health Insurance (NHI) was born in Taiwan in 1995. By 2008, the National Pension Insurance was set in place for those with weak economic ability, yet its benefit is 40% lower than those who had begun at the same starting point under the Labor Insurance. In 2026, it is forecasted that the estimated pension reserve of the Labor Insurance will run down to zero, pushing the system into bankruptcy. In 2017, the unhealthy life expectancy was 8.3 years for males and 9.8 years for females and is still rising. A few questions arise: Which long-term care (LTC) system is better for Taiwan, tax-financed or insurance? Rapid aging, fewer children, and slower economic growth have resulted in Taiwan’s social transformation, and thus how do these changes affect its social welfare systems and how should the systems be reformed? Over the past 30 years, Professor Lo has helped to establish the NHI financing system, evaluated the public pension systems, and participated in the design of the LTC insurance. She will explain in greater detail from the standpoint of an economist on why Taiwan is encountering such problems and where we should be going by rendering reform proposals for the welfare systems.