[Desk Column] Retirement Pension Fund Consolidation: A Matter of Trust That Comes Before 'Economies of Scale' (2026.01.22)
- #연금특위
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The backlash from the younger generation, in particular, is not simply a matter of emotion. Underlying it is a distrust that asks, "We don't even know whether we'll be able to properly receive the National Pension — and now we're supposed to trust yet another giant fund?"
In fact, the National Pension has been used for policy purposes such as expanding domestic stock investment or stabilizing the foreign exchange market, and in this process it has repeatedly generated political controversy.
This is why concerns have arisen that the fund consolidation of the retirement pension could become a "second National Pension."
The opposition's backlash is also fierce. On the discussion of retirement pension fund consolidation, the People Power Party has pushed back, saying, "The idea that the state would manage workers' old-age assets all at once is a clear potential violation of the Constitution."
The possibility cannot be ruled out that this could spread into a constitutional debate over how far to allow state intervention in private property.
It is also impossible to overlook the fact that, should management of the fund fail, where responsibility lies remains unclear.
Overseas, there are also cases in which retirement pension funds were mismanaged and suffered large-scale losses. retirement pension reserves have already surpassed 430 trillion won and are projected to reach 1,000 trillion won by 2040 — in this situation, the ripple effects of even a single misjudgment would be beyond imagination.
Even so, the discussion remains concentrated on DC-type fund consolidation.
The problem of low returns in the DB type, which accounts for nearly half of all retirement pensions, has been relatively pushed to the back burner. An approach that changes only the 'method of management' while turning a blind eye to the structural limits of a scheme with a high enrollment share blurs the direction of the policy.
