Tag: pensions

It sounds like South Korea is having the same problems with their pension system as the U.S. has with Social Security:

Deputy Prime Minister and Minister of Economy and Finance nominee Choo Kyung-ho has called for an overhaul of the state pension fund, which experts agree is crucial considering the country’s aging and shrinking population.

“Given the low birth rate and the increase in the elderly population, failure in reform will dent the fund’s financial soundness and drastically increase the burden on younger generations,” Choo said in a Q&A submitted to the National Assembly as part of the preparations for his Assembly hearing scheduled for May 2.

He views the current pension fund management system under the National Pension Service (NPS) as inefficient, saying, “It will only increase the national debt and will not last long.”

He called for a “comprehensive check-up” on the premium rates and the minimum age that people are eligible to receive pension benefits, among other factors.

The pension fund is on course to be depleted under the existing system, possibly in the 2050s.

Worse still, the population is aging rapidly.

Korea Times

You can read more at the link.

It looks like the elderly people of South Korea might be the ones making the sacrifice to pay off Kim Jong-un:

Anchor: The government is reportedly mulling a set of reform measures to ensure the sustainable operation of the National Pension Fund, which is expected to run out of money around three years earlier than predicted. The reported measures are, however, drawing strong public criticism as they’re likely to increase the burden for subscribers.
Our Lee Bo-kyung has more.

Report: The Moon Jae-in administration is floating the idea of pension reform as the pension fund for salaried workers and the self-employed is expected to bottom out in 2057, about three years earlier than previously estimated.

An advisory panel on the national pension is set to release its reform proposals on Friday. The proposals reportedly include a move to extend the subscription period to the age of 65 from the current 60.

The committee also recommends the government increase premiums gradually from the current nine percent of a subscriber’s monthly income. Another step could be pushing back the payout age to 68.

After the plans were leaked in media reports last Friday, people began voicing outrage about the possible changes, posting over one thousand online petitions on the Web site of the presidential office.  [KBS World Radio]

You can read more at the link.