본문 바로가기
  • Home

Implications of 1998 Swedish Pension Reform Experiences for Korean Pension Reform

  • Journal of the Scandinavian Society of Korea
  • Abbr : JSSK
  • 2023, (32), pp.1-34
  • Publisher : The Scandinavian Society of Korea
  • Research Area : Social Science > Area Studies > North Europe(Scandinavian)

주은선 1

1경기대학교

Accredited

ABSTRACT

This study is to find implications of Swedish 1998 pension reform for Korean pension reform. In the Korean pension reform debate, people who emphasize strengthening social security conflicts with people who prioritize and fiscal stability. Recent Korean pension reform debates show key points of case study. Swedish pension reform experiences are analyzed around Korean pension reform debate issues. As Swedish reform is the case of pioneering example of respond to ageing by introducing NDC and automatic balance mechanism, transition of basic pension to guarantee pension, the contention and effects of Swedish pension reform need to be analyzed. The implications are as follows. First, to respond to decline and instability of pension benefit brought by the introduction of NDC, the reform required several prerequisites like minimum guarantee level increase. The reform included complementary measures to reduce the risk of poverty among the elderly. However, even after the reform, additional measures were needed, such as introducing new Income Pension Supplement. Second, Swedish reform case shows as the instability caused by the application of the automatic balancing mechanism was unacceptable for pensioners, so state general budget’s supplemental role can be added to alleviate the instability. Third, transition of basic pension to guarantee pension and a sufficient level of minimum guarantee needs adequacy and comprehensiveness of earning related pension. Fourth, in order to achieve pension reform by alleviating the burden of insurance premium increases and providing sufficient minimum guarantee, it is inevitable to expand governmental budget support to public pension scheme including earning-related pension in aged society.

Citation status

* References for papers published after 2022 are currently being built.