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Comparing the future old-age income levels between generations in Korea based on ‘hypothetical risk biographies’ method: Focusing on national pension and occupational pension

LEE DAH MI 1 Jung, Changlyul 2

1연세대학교 사회과학연구소
2단국대학교

Accredited

ABSTRACT

The study aims to compare with the mid-term or long-term old-age income levels between generations in Korea by using hypothetical risk biographies' method when the occupational pension becomes mandatory. The results as follows. First, no biographies will receive old-age income beyond relative poverty line when they receive the National Pension(NPS) only. However, when the occupational pension becomes mandatory, the future old-age income in Korea will increase significantly with offsetting the effect on reduction in income replacement ratio in the NPS, which will be not less than those of the Western countries. Second, the effect that increases in income replacement ratio in the NPS by 5% will be insignificant in nearly all biographies. Third, the bigger the proportion of the occupational pension is, the larger pension gaps between income levels and between genders will be. Therefore, in order to achieve adequate old-age income security it is necessary to strengthen the roles of occupational pension throughout its compulsion and, other remedial actions in the NPS for vulnerable social groups such as women and low-income earners should be accompanied.

Citation status

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