Dozens of police officers and reporters were injured in a clash in April when protesters threw smoke bombs and used chains to try to pull down a gate and storm parliament.
Tsai said her government has completed the critical reform that "every leader had wanted to do", but did not.
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Tsai admitted some retirement plans will be affected, apologising and thanking veterans for their sacrifice.
"It is hard for third parties to understand that feeling of discontent and helplessness for most of those who will have less money in their pockets," she said.
But she said the majority can understand the country's predicament "even though there has been a lot of emotions and dissatisfaction in the course of reform".
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