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Critical Review on Goals of the Basic Pension of Korea: Based on the Empirical Analysis of the Poverty Alleviation Effect of the Basic Pension

Kim Yeon Myung 1 Sinsil Han 2

1중앙대학교
2국민연금연구원

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ABSTRACT

Because of low amounts of pension benefit, the Basic Pension of Korea has played a very limited role in reducing the high poverty rates of the elderly. Based on an empirical analysis of the poverty alleviation effect of alternative pension amounts, this paper shows that although the higher basic pension amounts help to reduce the absolute poverty rate of the elderly, it cannot significantly reduce the relative poverty rates. Authors contends that the main objective of the basic pension should be targeted to combat the absolute poverty level. This paper also argues that in order to reduce the relative poverty level of the elderly, the benefit level of National Pension should also be increased.

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* References for papers published after 2023 are currently being built.