Korea is aging so fast that it is hard to find any precedent around the world. With changes in the population structure due to 'low birth rate and aging', slowing economic growth caused by a prolonged 'low interest rate and low growth' coupled with social changes of 'early retirement', the retirement pension system is drawing keen attention amid the most urgent need to come up with measures to ensure old income.
Korea's retirement pension system, introduced in 2005, has shown continued growth in terms of volume, with the amount of reserves exceeding 190 trillion won. However, there are problems such as supply and demand of temporary money, low returns, and poor subscriber education.
In this study, we tried to find a way for Korea's retirement pension market to grow by diagnosing problems and suggesting development measures accordingly through the analysis of the current status of the retirement pension system. In addition, we drew the implications through the cases of the U.S., Australia and the U.K., and applied them to the domestic retirement pension system to minimize trial and error.
To develop the retirement pension system, the government should regulate the collection of middle-of-the-road funds to prevent the loss of reserves and encourage the supply and demand of pensions through tax benefits. In addition, the introduction of fund-type and default options is necessary to boost returns. In addition, by establishing a platform dedicated to retirement pensions and requiring comparative disclosure of all products, it can enhance subscriber convenience and promote competition in the market. It should also raise subscribers' awareness and allow practical education through the establishment of professional education institutions, active promotion and thorough supervision of system operations.
We hope that the development plan presented in this study will contribute to the establishment of Korea's retirement pension system and become a means to ensure stable retirement income.