TY - CHAP
T1 - The National Pension Systems and Financial Consumers
T2 - An International Comparative Perspective on the Key Linkages
AU - Cho, Man
AU - Nicolini, Gianni
AU - Lee, Hongmu
N1 - Funding Information:
The story of the Korean pension system started in 1960 with a limited program for public sector employees and evolved over time into a fairly comprehensive multitier program that includes various public and private pension programs covering retirees from different employment categories. According to the recommendations of the OECD and others, Korea also has a multitiered pension structure. Public assistance and the Basic Pension are located on the zero floor (zero tier). Both public assistance and the Basic Pension are financed by general taxes. The basic pension is paid to the elderly aged 65 years or older who are below 70% of the median income level. The 1st floor (1st tier) consists of the National Pension and public occupational pensions. The National Pension and the public occupational pensions are operated as a funding system that pays benefits from the contributions of insured persons. However, when the reserve is depleted, the government is required to cover the shortfall with general taxes. Employees and employers in workplaces and the self-employed are obligated to participate in the National Pension Plan, and others can also participate voluntarily. The employer pays half of the pension premium for employees in a workplace. The age from which one can start receiving pension benefits is currently 62 with at least 10 years of contributions. The pension age will gradually increase to 65 from 2033.
Publisher Copyright:
© 2022, The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
PY - 2022
Y1 - 2022
N2 - A secure and adequate pension system is central to establishing a welfare state. Given that, this book aims to document a set of diverse public policy issues on the financial consumers’ standpoint that are observed in different countries. In this introductory chapter, we attempt to summarize those policy issues that emerged from the survey of the countries included with respect to each of the three dimensions—adequacy, coverage, and sustainability. We hope that, from a financial consumer perspective, reading this book will help individuals to be aware of the functioning of the pension system and to develop reasonable expectations about their generosity and eventually to adjust their current saving behaviors to plan for a secure and comfortable retirement. At the same time, policymakers can benefit from reading by learning from the different countries’ experiences and from the analysis of different available approaches to face different challenges.
AB - A secure and adequate pension system is central to establishing a welfare state. Given that, this book aims to document a set of diverse public policy issues on the financial consumers’ standpoint that are observed in different countries. In this introductory chapter, we attempt to summarize those policy issues that emerged from the survey of the countries included with respect to each of the three dimensions—adequacy, coverage, and sustainability. We hope that, from a financial consumer perspective, reading this book will help individuals to be aware of the functioning of the pension system and to develop reasonable expectations about their generosity and eventually to adjust their current saving behaviors to plan for a secure and comfortable retirement. At the same time, policymakers can benefit from reading by learning from the different countries’ experiences and from the analysis of different available approaches to face different challenges.
UR - http://www.scopus.com/inward/record.url?scp=85143516553&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85143516553&partnerID=8YFLogxK
U2 - 10.1007/978-981-19-6446-6_1
DO - 10.1007/978-981-19-6446-6_1
M3 - Chapter
AN - SCOPUS:85143516553
T3 - Contributions to Management Science
SP - 3
EP - 26
BT - Contributions to Management Science
PB - Springer Science and Business Media Deutschland GmbH
ER -