This report intends to project the long-term finance of National Pension according to population aging and changing economic circumstances and to propose policy implications to maintain fiscal sustainability.
If the national pension is maintained as it is today, the amount of the National Pension Fund will diminish beginning in 2041, and it is predicted that it will be depleted by 2053. This projection predicts that depletion of the Fund reserve occurs seven years sooner than the 2008 National Pension Fiscal Calculation in the Administration does. These differences are attributed to the gaps between population projection and macro-economic projections.
This report, in preparation for aging, recommends that the insurance rate of National Pension should be raised to 12.9% by 2025 and the commencement age for issuing benefits should be adjusted every two years from 2013 to 67 by 2025 in order to secure fiscal sustainability and to enhance generational equity.
Along with these measures, this report recommends that benefit level of the Basic Old Age Pension will be raised gradually by 2028 to maintain old age income protection. Also, there are other reforms that this report recommends for National Pension including extension of the premium payment term, and establishment of a basis for evaluating finances.
Kim Dae Chul, Shim Hyejeong
If the national pension is maintained as it is today, the amount of the National Pension Fund will diminish beginning in 2041, and it is predicted that it will be depleted by 2053. This projection predicts that depletion of the Fund reserve occurs seven years sooner than the 2008 National Pension Fiscal Calculation in the Administration does. These differences are attributed to the gaps between population projection and macro-economic projections.
This report, in preparation for aging, recommends that the insurance rate of National Pension should be raised to 12.9% by 2025 and the commencement age for issuing benefits should be adjusted every two years from 2013 to 67 by 2025 in order to secure fiscal sustainability and to enhance generational equity.
Along with these measures, this report recommends that benefit level of the Basic Old Age Pension will be raised gradually by 2028 to maintain old age income protection. Also, there are other reforms that this report recommends for National Pension including extension of the premium payment term, and establishment of a basis for evaluating finances.
Kim Dae Chul, Shim Hyejeong