A 45% Income Replacement Rate Would Add 1,500 Trillion Won to the Fiscal Burden
- #국민연금법
Raising the Income Replacement Rate = A Growing Burden on Future Generations
The goal of securing old-age income is a worthy one, but the crux of the matter is who will pay for it. The National Assembly Budget Office has released cost estimates (cost projection reports) quantifying how large an increase in expenditure would result from the bills submitted by legislators. If the income replacement rate were raised to 50%, an additional 2,734 trillion won (under a phased increase) to as much as 3,086 trillion won (under a one-time increase) would be required. Raising the income replacement rate to 45% in a single step would put this cost at 1,544 trillion won. These figures represent the additional cost to the pension system over the 69 years from this year through 2093, converted to present value (prices benchmarked to this year's price level). This means that children not yet born will have no choice but to shoulder an astronomical burden once they reach adulthood.
https://www.joongang.co.kr/article/25309525
