LATEST PENSION SYSTEM REFORMS IN EASTERN ASIA (JAPAN, S. KOREA) AND EASTERN EUROPE (LITHUANIA)

Abstract

The aim of this article is to define the Japanese, South Korean and Lithuanian latest pension system reforms and measures during economic crisis. Problems of the Japanese, S. Korean and Lithuanian pension systems are similar to the others industrial Asian or European Union countries: ageing, impact of economic crisis and pension system budget deficit. Moreover, the Japanese, S. Korean and Lithuanian population ageing rapidly (low birth rate, longer life expectancy) and it influences the entire society and requires more complex and pressing pension systems reforms. All countries of the world fighting against the ageing and searching for the pension system financial sustainability. After the universal pension system reform in 1985, the task of Japanese government is to ensure for each participant an adequate and regular pension income, to implement the social justice and solidarity. Pension system reforms in S. Korea began intensively only since 1997 and this was associated with a global currency crisis. Since the end of the last century until 2009, S. Korean government has developed a modern social security and social assistance systems. The government is constantly increasing social security coverage and benefits (from 1999 to 2009, social benefits increased almost four times). However, the social security coverage is still insufficient, income disparities increasing and the financial disbalances require to reform the pension system for a long-term perspective. The pension system reform of 2003 and 2011 raised the wide discussion on the state social pension insurance system future development of Lithuania. This reform clearly demonstrates that the government in 2003 opted for a liberal position and in 2011 – it was decided to strengthen state social insurance guarantees. KEY WORDS: pension system, reform, crisis, ageing, Japan, S. Korea, Lithuania.