Which Side's Claim Will Go Down in History as "The Greatest Comedy in the History of World Pension Systems"! (September 5, 2024)

(The following is Professor Kim Yeon-myeong of Chung-Ang University's assessment of the government's National Pension reform proposal announced in September 2024.

Two diametrically opposed evaluations of the government's pension reform proposal at the time — as represented by the positions of the Pension Future Forum and Professor Kim Yeon-myeong —

which side's claim will go down in history as the greatest comedy in the history of world pension systems

is something that younger cohorts in particular must keep both eyes wide open to observe!)

 

"It will go down in history as the greatest comedy in the history of world pension systems."

At a press briefing held by the National Action for Strengthening Public Pensions at the National Assembly Members' Office Building on the 5th, Professor Kim Yeon-myeong of the Department of Social Welfare at Chung-Ang University offered this overall assessment of the National Pension reform plan announced by the government the previous day.

Professor Kim had previously served as co-chair of the private advisory committee — together with Professor Kim Yong-ha of Soonchunhyang University — for the Special Committee on Pension Reform of the 21st National Assembly. He currently participates in the National Action for Strengthening Public Pensions as a policy committee member.

(Omitted)

Professor Kim Yeon-myeong stated that "the trigger for introducing automatic adjustment mechanisms in advanced countries such as Japan was that, as the public came to bear contribution rates approaching 20%, it became impossible to raise contributions any further, and the mechanism was introduced to adjust benefit amounts,"

"In our country, however, the contribution rate is already low, and now there is an attempt to simultaneously adjust National Pension benefit levels — that is the source of the problem."

He projected that this would lead to a further reduction in already low National Pension benefits, deepening elderly poverty and condemning even future younger generations to poverty in old age.

He also identified the generationally differentiated increase in the contribution rate as a problem.

Professor Kim argued that the proposal "ignores the fact that those in their forties and fifties constitute a 'sandwich generation' simultaneously bearing the burden of supporting their parents and raising their children," adding that "it is difficult to characterize them as a generation that enjoyed any special privilege."

He further expressed concern that the proposal "amounts to nothing more than a shortsighted policy idea that fails to comprehensively consider the labor market conditions and living standards of each generation," warning that "intergenerational equity must not be viewed in such a one-dimensional way — if mishandled, it will only stoke conflict between generations."

https://v.daum.net/v/20240905115050108