• Korean Management Science Review
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• v.32 no.3
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• pp.13-28
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• 2015

Using the most recent dataset of Korea and U.S. household finance, this study analyzed demand and adequacy of private pensions for pre-retirees. For this purpose, 2013 Korean Retirement and Income Study (KReIS) of national pension research institute in Korea and 2013 SCF (Survey of Consumer Finances) of FRB in U.S. were used. For comprehensive comparisons of the two countries, this study classified the private pension into sub-categories such as personal pension, corporate pension, and retirement benefits, and used three different criteria including ownership, accumulated present value of each pension, and income replacement ratio of each pension. After controlling for other factors, educational level of householder and household income were critical determinants of size and adequacy of private pension in both countries. Different from Korean households, householders' gender, marital status, and health status had an important effect on the private pension size and adequacy in the U.S. In addition, home ownership significantly increased only private pension adequacy in Korea, and also increased ownership rate, size, and adequacy of private pension in the U.S. Results of this study provide useful implications for future pension system and policy in Korea.

• 한국노년학
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• v.36 no.3
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• pp.809-826
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• 2016

This study analyzed private pension dependency of Korea and U.S. households using the most recent dataset of two countries. For this purpose, 2013 Korean Retirement and Income Study(KReIS) of national pension research institute in Korea and 2013 SCF(Survey of Consumer Finances) of FRB in U.S. were used. The private pension dependency was defined as the proportion of private pension wealth among total financial wealth in each household and tobit model was used to investigate determinants of private pension dependency of the two countries. After controlling for other factors, household income and net worth, age, educational attainment, and health status of householder were crucial determinants of private pension dependency for both countries. Householder's age, educational attainment, and health tend to increase the private pension dependency in Korea and U.S. However, household income and net worth affected the private pension dependency opposite direction. The private pension dependency increased with high level of income and net worth in Korea, while it decreased with high level of income and net worth in U.S. Results of this study provide useful implications for future pension system and policy in Korea.

• Anayses & Alternatives
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• v.2 no.2
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• pp.67-91
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• 2018

This study scrutinizes the necessity and cases of the public and pension cooperation and tries to present the way of construction of information infrastructure for the pension systems suitable for Korea. The developed countries have recently been focusing on strengthening the multi-pillar pension system, while pension education and information services have emerged as an important element of the pension cooperation. The frame of the multi-pillar-pension system in Korea has already been constructed, but it is not substantial. Especially bad information on the pension system has seriously hindered the consolidation of the pension system. In order to solve this problem, we analyzed cases of public-private cooperation systems in Iceland, New Zealand, Netherlands, and Sweden. In order to build a basic infrastructure for construction pension cooperation in Korea, it is necessary to promote information exchange and cooperation among pension organizations and to improve the pension portal of NPS 'My Pension'. In addition, this study suggests establishing an association of private and public pension schemes, which manages the integrated information and education of pension systems.

• Korean Journal of Social Welfare
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• v.62 no.2
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• pp.329-348
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• 2010

Following the welfare state typology well known, the typology in terms of individual system in welfare state has been widely examined and, pension which is the biggest and most important in welfare state has been classified into Beveridge and Bismarckian types based on their pension system design. Such typology focused on benefit type or size of private pension has been recently refined to add a new type - 'Bismarckian Lite' type - in addition to traditional Beveridge and Bismarckian types. Whereas the pension reforms in the developed countries has been changes within their pension regimes, the Korean pension reform in 2007 seems to have changed the existing social insurance type into the 'Bismarckian Lite' type. However, considering the immaturity of Korean pension regime, it is difficult to conclude the existing status of the Korean pension regime and, the Korean one can be classified into a multi-pillar one. Over the last decades the developed countries have increased the size of private pension regardless of their original pension regimes, which tends to converge into multi-pillar schemes. Accordingly, there is recently a new typology focused on the degree of regulation in terms of private pensions, which seems to be the better perspective. It will be more important how to regulate the (immature) occupational pension as well as the National Pension in Korea. Considering that old age income security in countries where the public regulation regarding private pension was absent has been deteriorated, it would be necessary to strengthen the role of government to effectively regulate private pension.

• 한국사회정책
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• v.25 no.3
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• pp.279-303
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• 2018

Since the introduction of the Riester Pension Scheme, the controversy has continued in the policy studies and the political debates. This study evaluates the achievements and limitations of the German Riester pension scheme and tries to derive policy implications for South Korea. As a result of the analysis, the most worthwhile achievement of the Riester Pension is to strengthen the role of the private pension schemes. Unlike other private pension schemes, it included a large part of lower income households. It also opened a new perspective of utilizing private pension schemes to accomplish the goals of the family policy. Despite these attainments, it does not reach the promised coverage rate. It also was revealed that the higher income households have concluded more Riester Pension Contracts than the targeted lower-income households. Due to high administration fee and incomplete information problems, benefit levels are supposed to be much lower than expected. It concludes, above all, despite some achievements, the Riester Pension Scheme will not fill completely the gap of old age income security caused by the reduction of the public pension system. The German case provides fruitful lessons for Korea. The introduction of a subsidized personal pension scheme in South Korea can be realized only when some prerequisites would be satisfied such as the consolidation and maturing of public pension schemes and the strengthening of the transparency in the private pension market.

• Korean Journal of Social Welfare
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• v.48
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• pp.7-41
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• 2002

This paper analyses the proposals contained in the British Government Green Paper, A New Contract for Welfare: Partnership in Pensions for low paid workers and the potential of the new rules to guarantee a decent income in old age. The UK pension system is a partnership between the State(providing the basic state pension and the SERPS), employers(providing occupational pension scheme) and private pension providers(providing personal pensions). Although the system needs to change, this partnership remains the right foundation. However, the pension Green Paper proposes substantial changes to second tier pension provision in the UK. In particular, the Government plans to replace the SERPS with a new State Second Pension. According to the Green Paper, this will result in "dramatically better pension provision for those earning less than ${\pounds}9,000$ a year" and through increased payments to private pension schemes, will also provide "extra help to those on middle incomes(${\pounds}9,000-{\pounds}18,500$ a year). Therefore, it discusses the general principles inherent in the design of the British pension system and analyses the balance of these principles is represented in the Green Paper. The paper then examines how the Government's proposals protect individuals from a means-tested old age. This paper finds that the Green paper's proposals add up to reinventing a new two-stage basic pension. However, two key features of a such a basic pension package are missing- an 'adequate' level of payment and comprehensive entitlement. Because of these missing principles we argue that the Green Paper's proposals incorporate for the low paid. The income from the basic pension and the secondary pension which is so near the means-tested minimum that little is gained in retirement from a lifetime of work and contribution. Indeed, the shift away from collective provision and the emphasis on individual responsibility will reinforce this inequality, so that many poor will continue to experience poverty in later life.

• Korea Real Estate Review
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• v.28 no.3
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• pp.53-64
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• 2018

OECD countries have been stimulating private pensions instead of public pensions because the financial stability of public pensions has been threatened by the aging population. Korea, which has the fastest aging population in the world, has been following the recommended policies of major countries. Unlike major economies, however, most of Korea's household assets are composed of real estate assets. Due to the economic and social importance of real estate assets in Korea, the wealth effect of real estate has been used as a major tool in macroeconomic policy. This study analyzed the effect of real estate value changes on the contribution of private pensions (personal pension + retirement pension). Utilizing a two-way, fixed effect model with the balanced panel data of the National Survey of Tax and Benefit, empirical results presented that the private pension contribution increased by 0.171% when the value of real estate increased by 1%. Thus, real estate value changes were analyzed as positive for retirement preparation through private pension. These results suggested that if the real estate market would shrink in the future, consumption would decrease, and the degree of preparation for retirement might be smaller.

• 한국사회복지학회:학술대회논문집
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• 2004.04a
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• pp.457-473
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• 2004

This study purports to contribute to existing literatures and debates about the future of Korean public pension system by introducing the cases of pension privatization in eight Latin American countries. Following the Chilean reform in 1981, many Latin American nations to a varying degree replaced their public pension system with private one, and the performance of those private systems started to emerge. Overall, pension privatization does not appear to be the panacea that some of its advocates have argued. While it seems to remedy existing problems, it is creating new ones. As an unprecedented policy experiment, the pension privatization in many Latin American countries implies that there are a number of risks in the path of privatization.

• Korean Journal of Social Welfare
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• v.67 no.1
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• pp.215-237
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• 2015

This paper aims to check the multi-pillar pension system in Korea. That is why, We analyzed the insured status of people in terms of multi-pillar pension system including National Pension Service, Private Pension, Retirement Pension over time. The main findings are as follows; firstly, the 'multi-pillar type'(27.7%), the 'public pension type'(12.8%) and the 'insecure type'(59.6%) have been formed. Secondly, any socio-demographic factors like labor market status, gender, age et cetera could not guarantee the pension right for multi-pillar system. As a result, we emphasize that including the 'insecure type' into public pension schemes is a prerequisite for establishing the multi-pillar pension system.

• 한국사회정책
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• v.25 no.4
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• pp.301-321
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• 2018

The purpose of this paper is to analyze whether any combination of the quantitative and qualitative aspects of the public pension system is a causal factor for the elderly poverty reduction rate. For this, fuzzy-set qualitative comparison analysis was conducted with the poverty reduction rate as the outcome condition variable, the public pension expenditure ratio, the redistributive index, the first floor public pension weight, the second floor public pension weight and the second floor forced private pension weight did. As a result of the analysis, the combination of high public pension expenditure ratio, low two - tier public pension share and high two - tier compulsory private pension share has become a cause of high poverty reduction rate of the elderly. And more various forms of association were found as the cause of low poverty reduction rate of the elderly. This paper suggests policy proposals based on the above findings.