Abstract

Currently, the state and local governments share the financial resources required for basic pension payments. The state bears 40% to 90% of the resources necessary in consideration of the ratio of the elderly population and the financial status of local governments. Concerns have been raised that the quality of welfare services provided by local governments with poor economic conditions could decline overall as the financial burden of local governments increases due to the recent aging population. Accordingly, it is necessary to increase the proportion of the state burden required for basic pension payments from the current one. The ratio needs to be raised to a full amount of more than 80%. This refers to strengthening the responsibility for the state's basic pension payment and reducing local governments' financial burden with poor economic conditions.
 This study proposed new ways to finance the existing basic pension, insisted on strengthening the state's financial burden proportion compared to the current one, and examined ways to reduce the burden on local governments with poor economic conditions. Raising the state burden ratio for basic pension payments is expected to have a positive effect. It can ease the burden on local finances for basic pension payments and promote the soundness of local finances.
 The adjustment of the financial burden of the basic pension is positive in that it presents a new perspective on the financial resources of the basic pension and is significant in that it can reduce the burden on local governments as well as look at reasonable ways to become a more robust basic pension system by expanding the financial resources of the basic pension.

Full Text
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