• Title/Summary/Keyword: Personal Pension

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Private Pensions Demand of Korean and U.S. Households (한국과 미국의 사적연금자산 수요에 관한 비교연구)

  • Yuh, Yoonkyung
    • Korean Management Science Review
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    • v.32 no.3
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    • pp.13-28
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    • 2015
  • Using the most recent dataset of Korea and U.S. household finance, this study analyzed demand and adequacy of private pensions for pre-retirees. For this purpose, 2013 Korean Retirement and Income Study (KReIS) of national pension research institute in Korea and 2013 SCF (Survey of Consumer Finances) of FRB in U.S. were used. For comprehensive comparisons of the two countries, this study classified the private pension into sub-categories such as personal pension, corporate pension, and retirement benefits, and used three different criteria including ownership, accumulated present value of each pension, and income replacement ratio of each pension. After controlling for other factors, educational level of householder and household income were critical determinants of size and adequacy of private pension in both countries. Different from Korean households, householders' gender, marital status, and health status had an important effect on the private pension size and adequacy in the U.S. In addition, home ownership significantly increased only private pension adequacy in Korea, and also increased ownership rate, size, and adequacy of private pension in the U.S. Results of this study provide useful implications for future pension system and policy in Korea.

Evaluation and Implications of the German Riester Pension Scheme (독일 리스터연금제도의 평가와 시사점)

  • Kim, Won Sub
    • 한국사회정책
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    • v.25 no.3
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    • pp.279-303
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    • 2018
  • Since the introduction of the Riester Pension Scheme, the controversy has continued in the policy studies and the political debates. This study evaluates the achievements and limitations of the German Riester pension scheme and tries to derive policy implications for South Korea. As a result of the analysis, the most worthwhile achievement of the Riester Pension is to strengthen the role of the private pension schemes. Unlike other private pension schemes, it included a large part of lower income households. It also opened a new perspective of utilizing private pension schemes to accomplish the goals of the family policy. Despite these attainments, it does not reach the promised coverage rate. It also was revealed that the higher income households have concluded more Riester Pension Contracts than the targeted lower-income households. Due to high administration fee and incomplete information problems, benefit levels are supposed to be much lower than expected. It concludes, above all, despite some achievements, the Riester Pension Scheme will not fill completely the gap of old age income security caused by the reduction of the public pension system. The German case provides fruitful lessons for Korea. The introduction of a subsidized personal pension scheme in South Korea can be realized only when some prerequisites would be satisfied such as the consolidation and maturing of public pension schemes and the strengthening of the transparency in the private pension market.

The Financial Stability of Before-and-after Retirement -Expectation and Support for the Quality of the Elderly Life- (은퇴 전후 세대 재정안정성 -노년기 삶의 수준에 대한 기대와 지원-)

  • Kim, Eunyoung
    • Korean Journal of Social Welfare
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    • v.66 no.1
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    • pp.61-85
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    • 2014
  • Lately, as the problem of the aged poverty becomes a big social issue, this paper studies the problem of financial stability with respect to the income and consumption of before-and-after retirement generations. After dividing the data in Korean Longitudinal Study of Ageing(KLoSA) into retired and non-retired groups, this study compares the difference among ageing groups by cross analysis and t-test. First, the result tells that the total personal income of retired group is lower than the one of non-retired group. Second, the public pension income benefit ratio of retired group is only 30% of it's total income, and the amount of public pension appears to be 40% of the total pension income. The benefit ratio of the personal pension income is low as about 1% in both groups, The private transfer income of the retired group takes relatively large portion in its total personal income. Third, as people gets older, financial stability gets worse because consumption does not decrease as much as the income decreases. Fourth, it is turned out that the expectation of old life supporting from nation is low in both groups. Fifth, the factors that affects the income of the public pension in the retired group are gender, age, education, and health status, when compared with the factors to the personal total income of the non-retired group. In terms of policy, this paper emphasizes the needs of the intensification of the public pension and the support for the revitalization of the personal pension.

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The Impact of Real Estate Value Changes on Retirement Preparation : Focusing on Private Pensions (부동산의 가격변화가 노후준비에 미치는 영향 : 사적연금을 중심으로)

  • Kim, Dae Hwan;Lee, Dong Hyun
    • Korea Real Estate Review
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    • v.28 no.3
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    • pp.53-64
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    • 2018
  • OECD countries have been stimulating private pensions instead of public pensions because the financial stability of public pensions has been threatened by the aging population. Korea, which has the fastest aging population in the world, has been following the recommended policies of major countries. Unlike major economies, however, most of Korea's household assets are composed of real estate assets. Due to the economic and social importance of real estate assets in Korea, the wealth effect of real estate has been used as a major tool in macroeconomic policy. This study analyzed the effect of real estate value changes on the contribution of private pensions (personal pension + retirement pension). Utilizing a two-way, fixed effect model with the balanced panel data of the National Survey of Tax and Benefit, empirical results presented that the private pension contribution increased by 0.171% when the value of real estate increased by 1%. Thus, real estate value changes were analyzed as positive for retirement preparation through private pension. These results suggested that if the real estate market would shrink in the future, consumption would decrease, and the degree of preparation for retirement might be smaller.

Reforms of the British Pension System : Reestablsihment of the Public-private Partnership (영국의 연금개혁 : 공.사 협력관계의 재구축)

  • Kang, Wook-Mo
    • Korean Journal of Social Welfare
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    • v.48
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    • pp.7-41
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    • 2002
  • This paper analyses the proposals contained in the British Government Green Paper, A New Contract for Welfare: Partnership in Pensions for low paid workers and the potential of the new rules to guarantee a decent income in old age. The UK pension system is a partnership between the State(providing the basic state pension and the SERPS), employers(providing occupational pension scheme) and private pension providers(providing personal pensions). Although the system needs to change, this partnership remains the right foundation. However, the pension Green Paper proposes substantial changes to second tier pension provision in the UK. In particular, the Government plans to replace the SERPS with a new State Second Pension. According to the Green Paper, this will result in "dramatically better pension provision for those earning less than ${\pounds}9,000$ a year" and through increased payments to private pension schemes, will also provide "extra help to those on middle incomes(${\pounds}9,000-{\pounds}18,500$ a year). Therefore, it discusses the general principles inherent in the design of the British pension system and analyses the balance of these principles is represented in the Green Paper. The paper then examines how the Government's proposals protect individuals from a means-tested old age. This paper finds that the Green paper's proposals add up to reinventing a new two-stage basic pension. However, two key features of a such a basic pension package are missing- an 'adequate' level of payment and comprehensive entitlement. Because of these missing principles we argue that the Green Paper's proposals incorporate for the low paid. The income from the basic pension and the secondary pension which is so near the means-tested minimum that little is gained in retirement from a lifetime of work and contribution. Indeed, the shift away from collective provision and the emphasis on individual responsibility will reinforce this inequality, so that many poor will continue to experience poverty in later life.

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The Effects of Cultural Capital and Social Welfare Expenditure on the Elder's Subjective Happiness

  • Bang, Sung-a;Park, Hwie-Seo
    • Journal of the Korea Society of Computer and Information
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    • v.22 no.12
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    • pp.163-170
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    • 2017
  • The purpose of this study is to introduce policy and theoretical implications by analyzing affecting factors for the elder's happiness. For this study, we analyzed data using HLM. Data include a world value survey(hereafter, WVS) as personal level analysis data and also OECD's Social Expenditure Database(hereafter, SOCX) and database from the World Bank as national level analysis data. The subjects of personal level analysis were the elder who are over 65-years od age, and they were total 3,297 people, and while the subjects of national level analysis were total 9 OECD countries. For the data analysis, hierarchial linear model(HLM) analysis was done by using HML 7.0 program. As a result of analysis, First, for the elderly's happiness, they should improve self-disposition, members of social groups, and social class. Second, the old-age pension and the survivor's pension had no meaningful effect on the happiness. but it was found that self - disposition, social class, gender, and health status showed meaningful interaction effect according to old - age pension, survivor pension, per capita GDP, income inequality. This suggests that efforts to improve the happiness of the elderly should be made at the individual level and the national level at the same time.

The necessity of developing various convergence financial services in preparation for the aging (고령화에 대비한 다양한 융복합 금융 서비스 개발의 필요성)

  • Choi, Jeong-Il;Ahn, Chang-Yong
    • Journal of Digital Convergence
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    • v.13 no.4
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    • pp.137-146
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    • 2015
  • The aging process in this country is underway at the fastest pace compared to those of the leading countries. On the other hand, preparing for retirement funds is more difficult than before due to the impact of slow interest rate and slow growth. The purpose of this study is to examine the necessity of providing various financial services in preparation for the future aging era. After analizing the various materials and utilizing a survey of the bank employees and the general public, we have found the followings. The replacement rate of this country, 55%, is much lower than the suggested level of World Bank, 75%. Also, the pension ratio in the income after retirement of this country is much lower compared to those of the States and Japan. The most people who participated in the survey needed ₩2,000 - ₩2,990 thousand for monthly living expenses after retirement. For the retirement funds, the higher the age the higher proportion of savings deposits they want, and the lower the age the higher proportion of insurance and pension products they want. Based on these analyses, the necessities of developing financial life planning which includes both financial and non-financial sides, retirement funds management according to age, revitalization of housing pension and developing diverse retirement funds are suggested.

Global Comparison for Personal Asset Management by Old Age People in Korea (한국 노년기 자산관리의 국제비교)

  • Kim, Byoung Joon
    • International Area Studies Review
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    • v.21 no.1
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    • pp.221-243
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    • 2017
  • In this study, I examine overall conditions and problems of personal asset management processes by the old age people in Korea from the global perspectives. Major recommended policy implications for those are as follows.. First, the IRR (income replacement ratio) of public pensions in Korea is found to rank nearly the lowest among the OECD member countries. The relatively low fund performance compared to that of developed countries as well as this low IRR can be pointed out as major problems of public pension in Korea. It is recommended to reinforce specialty in fund management as a top priority to solve out these problems related with public pensions in Korea. Second, it is needed to set retirement pensions to be mandatory for almost all the firms in Korea to substitute for the above lower IRR of public pensions and to recover from the highest elderly poverty ratio among the OECD countries. Third, it is required to discuss about the expansion of tax refund policy application in the individual pension sector and many financial investment products under the correction of current budget control to motivate voluntary subscription for individual pension planning and to stabilize elderly lives of ordinary people in Korea. Fourth, it is required to induce market mechanism in controling price and longevity risk of reverse mortgages for the long-run sustainability.

Examining the Debate of Social Security Pension Reform in the United States by 1996 (미국의 사회보장연금 개혁논쟁에 관한 고찰)

  • Won, Seok-Jo
    • Korean Journal of Social Welfare
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    • v.51
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    • pp.5-28
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    • 2002
  • The purpose of this paper is to examine the issues and the characteristics of the recent social security pension debate in the United States. For the purpose the transforming process from the funded system to the pay-as-you-go system in the 1930s, three alternatives of social security reform proposed by the Social Security Administration in 1996, and the other various alternatives proposed by the politicians, the business leaders and the scholars were analysed. While the alternatives were compared, the critical issues could be identified. The core issues were as follows. First, the individual accounts should be newly made or not? Second, who is the main administrator, government or private investment companies? Third, what is important, the inter-generational and the vertical income redistribution effect or the individual equity in social security pension system? Besides, the different positions of the social forces were also examined. The supporters of privatizing the social security pension, supporters of IA and PSA, prefer the value of equity, the effect of promoting savings, the private management of the social security funds, and the investment of the funds to the private capital markets. The supporters of pay-as-you-go system, supporters of MB, prefer the inter-generational and the vertical income redistribution effect of social security pension, and were convinced that fundamental changes of the systems are not necessary, and the insolvency problem could be overcome through a few reform, for example, increasing the rate and decreasing the benefits.

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Silver Services Demand and Manpower Supply of the Aging Society in Busan (부산지역 실버서비스 및 관련 인력수요에 대한 요구도)

  • Kim, Jeong-Soon;Jeoung, Ihn-Sook;Kim, Myoung-Soo
    • Journal of Korean Public Health Nursing
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    • v.21 no.2
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    • pp.182-192
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    • 2007
  • Purpose: The objectives of this study were to define basic data for developing silver services related to goods, medical care, finance, leisure and residence. Method: In this cross-sectional study, the subjects were 792 pre-elderly and 382 elderly. The data were collected 2005 by using a structured questionnaire from Aug. 19 to Sep. 5. Data were analyzed using descriptive statistics on the SPSS version 12.0 for windows. Result: The pre-elderly had the intention to use massage chair(36.6%), homecare service(29.8%), national pension(35.9%), sports(48.5%) and personal house(59.5%) in the ares of silver goods, medical care, finance, leisure and residence, respectively. The elderly wanted sphygmomanometer(38.7%), homecare service(27.7%), pocket money from their offspring (40.5%), sports(33.5%), and personal house(74.8%). They wanted manpower in the area of reforming of living place, leisure time and education, counseling of silver goods, and management of finance. Conclusion: Based on this study findings, the pre-elderly are thoroughly established for their future than the elderly. It is important to upgrade the silver services and to prepare the manpower for the pre-elderly and the elderly in the future of the aging society.

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