The Debate over the Need to Raise the National Pension Income Replacement Rate That Emerged During the 2015 Government Employees Pension Reform Process

(2015) 《 Minister of Health and Welfare Moon Hyung-pyo recently indicated that the government intends to pursue National Pension reform once the reform of the Government Employees Pension is complete. At the same time, calls have emerged for raising the National Pension's income replacement rate. The income replacement rate—the proportion of lifetime average earnings received as a pension benefit—is scheduled to be reduced incrementally to 40% by 2028. Proponents of raising the rate point to jeers that, because early retirement has shortened contribution periods, pension benefits amount to little more than pocket money, and argue that the income replacement rate must be raised even if this requires raising contributions. Those on the opposing side counter that Korea's income replacement rate is not low by comparison with advanced economies, and that under a one-person, one-pension system it would be sufficient. The views of two experts are presented below. 》

https://www.donga.com/news/Opinion/article/all/20150417/70754094/1