@article{ART002258350},
author={Sung Jooho and Dong-Geon Shin and Sanghyun Bae},
title={The Financial Effects of Extending the Normal Retirement Age and/or Implementing the Wage Peak System},
journal={Journal of Insurance and Finance},
issn={2384-3209},
year={2017},
volume={28},
number={3},
pages={81-102},
doi={10.23842/jif.2017.28.3.004}
TY - JOUR
AU - Sung Jooho
AU - Dong-Geon Shin
AU - Sanghyun Bae
TI - The Financial Effects of Extending the Normal Retirement Age and/or Implementing the Wage Peak System
JO - Journal of Insurance and Finance
PY - 2017
VL - 28
IS - 3
PB - Korea Insurance Research Institute
SP - 81
EP - 102
SN - 2384-3209
AB - In Korea, population aging is rapidly progressing due to lower fertility rate and longer life expectancy. As a result, the working age population peaked in 2016 and is expected to decline sharply thereafter. As one of the alternatives to reduce the working age population, Korea government passed the bill to extend the retirement age of workers in 2013, and it is mandatory to extend the retirement age of entire workplace in 2017. However, the extension of retirement age will increase the financial burden of labor costs of the company, as it includes problems such as a decrease in new hiring; thus, the introduction of a wage peak system is considered.
Therefore, in this paper, under the various scenarios, using the quantitative indicators of future expected retirement benefit present value(PVFB), the effect of introducing retirement age and wage peak system on retirement benefit financial burden of enterprises were measured. This suggests that the influence of the retirement and discount rate is high and that research on reflecting extension of retirement age is an urgent task.
KW - extension of retirement age;wage peak system;financial burden of retirement benefit;retirement rate;discount rate
DO - 10.23842/jif.2017.28.3.004
ER -
Sung Jooho, Dong-Geon Shin and Sanghyun Bae. (2017). The Financial Effects of Extending the Normal Retirement Age and/or Implementing the Wage Peak System. Journal of Insurance and Finance, 28(3), 81-102.
Sung Jooho, Dong-Geon Shin and Sanghyun Bae. 2017, "The Financial Effects of Extending the Normal Retirement Age and/or Implementing the Wage Peak System", Journal of Insurance and Finance, vol.28, no.3 pp.81-102. Available from: doi:10.23842/jif.2017.28.3.004
Sung Jooho, Dong-Geon Shin, Sanghyun Bae "The Financial Effects of Extending the Normal Retirement Age and/or Implementing the Wage Peak System" Journal of Insurance and Finance 28.3 pp.81-102 (2017) : 81.
Sung Jooho, Dong-Geon Shin, Sanghyun Bae. The Financial Effects of Extending the Normal Retirement Age and/or Implementing the Wage Peak System. 2017; 28(3), 81-102. Available from: doi:10.23842/jif.2017.28.3.004
Sung Jooho, Dong-Geon Shin and Sanghyun Bae. "The Financial Effects of Extending the Normal Retirement Age and/or Implementing the Wage Peak System" Journal of Insurance and Finance 28, no.3 (2017) : 81-102.doi: 10.23842/jif.2017.28.3.004
Sung Jooho; Dong-Geon Shin; Sanghyun Bae. The Financial Effects of Extending the Normal Retirement Age and/or Implementing the Wage Peak System. Journal of Insurance and Finance, 28(3), 81-102. doi: 10.23842/jif.2017.28.3.004
Sung Jooho; Dong-Geon Shin; Sanghyun Bae. The Financial Effects of Extending the Normal Retirement Age and/or Implementing the Wage Peak System. Journal of Insurance and Finance. 2017; 28(3) 81-102. doi: 10.23842/jif.2017.28.3.004
Sung Jooho, Dong-Geon Shin, Sanghyun Bae. The Financial Effects of Extending the Normal Retirement Age and/or Implementing the Wage Peak System. 2017; 28(3), 81-102. Available from: doi:10.23842/jif.2017.28.3.004
Sung Jooho, Dong-Geon Shin and Sanghyun Bae. "The Financial Effects of Extending the Normal Retirement Age and/or Implementing the Wage Peak System" Journal of Insurance and Finance 28, no.3 (2017) : 81-102.doi: 10.23842/jif.2017.28.3.004
