Age Income Security Research Articles

주택연금의 미시적 가입 의사결정 요인의 분석

Based on the finance panel survey data of the Korea Institute of Public Finance, this study investigates the factors of households’ microscopic decision to join the reverse mortgage loan (“RML” hereafter). The result of this study implies that, instead of optimal decision making which considers the necessity of the old age income security, arbitrary judgement is generally prevalent in the choice of whether to join the RML. This property of insufficient rationality in RML application is deemed to come from the poor level of utilization which reflects the lack of public interest in RML.

Health improvements of older adults based on benefit duration: Lessons from Korean social pension policies

The social pension, introduced in 2008 in Korea, has now become the most prominent old age income for most older adults. As of May 2022, it paid a monthly benefit of around USD 275 for 6.0 million older persons aged 65 and over who belong to the bottom 70% of the income and asset distribution. Although social pension's objectives focus on alleviating old age poverty and increasing income levels, it also encompasses a clear implication on health: social pension benefit can be spent on items or activities that improve the beneficiary's health.Using the Korean Longitudinal Study on Ageing data, between 2006 and 2018, and the Propensity Score Matching combined with Generalized Difference-In-Differences based on event study design, this study investigates the effects of receiving the social pension on objective measures of health that are representative of health and well-being in old age, by benefit duration. Study results showed that continually receiving social pension significantly improved beneficiaries’ grip strength and cognitive ability. Grip strength was improved by 2.3-kg in the fifth year of receiving social pension. Additionally, the cognitive ability (K-MMSE score) was improved by 1.309 points in the first year. Results of descriptive analysis suggested that the social pension may have benefitted the health of the beneficiaries by improving their nutrition, health care utilization, and physical activities, and reducing financial strain and associated stress level.To the best of our knowledge, this is the first study to investigate the cumulative effects of nation-wide social pension programs on older adults’ objective health measures by benefit duration up to five years, in a high-income country setting where old age income security systems are under-developed.

Social Security On Labor Markets to Address the Aging Population in Selected ASEAN Countries

The world is becoming older, and aging in the developing countries of the ASEAN region is unfolding faster than most developed countries in the United States and Europe. This paper examined the effectiveness of old age income security programs mandated in selected ASEAN countries. These programs sought to address the aging problem to encourage the government to promote the aging labor force's efficiency and increase labor force productivity. Furthermore, the study examined the effect of old-age dependency, increase in the life expectancy, and GDP per capita on labor force productivity using a panel data set from selected ASEAN countries from various income brackets, specifically Malaysia, Singapore, Thailand, and Vietnam, which are also classified as yellow group nations that are in the process of the demographic dividend implementation. Using the Multiple Regression Model, the researchers found out that the Old-Age Dependency Ratio positively impacts Labor Force Participation Rate. However, GDP per Capita, Life Expectancy, and the Non-contributory fund decrease the Labor Force Participation Rate.

Inequalities in income security in later age in Latin America.

ABSTRACTThis paper examines inequalities in income security in later age. Three dimensions of inequality are considered: (i) inequalities in access to income support across countries and types of schemes; (ii) inequalities in the level of support within countries; and (iii) trends in gender inequality. Scheme stratification reinforces inequalities across socioeconomic groups and gender. More egalitarian, and sustainable, outcomes in later age income security in Latin America require policy reforms aimed at the incorporation of excluded groups and the withdrawal of public subsidies supporting privileged retirees.

Transformative public policy design? The lifeworld of early postcolonial social policy in Ghana

Based on the experience of advanced industrialized countries, social policies are portrayed as responses to the crises of capitalist industrialization. But this claim cannot explain the development of social policies, albeit limited in scope, in African countries in the early postcolonial era where policy makers undertook ambitious social development programs although their countries were comparatively underdeveloped. This article examines the approach to socio-economic development in the early postcolonial era (1950s to mid 1960s) in Ghana and argues that policymakers at the time adopted a transformative view of social policy and used it strategically as an integral part of modernization efforts to serve multiple purposes simultaneously. Consequently, social programs such as education and health were conceptualized as essential for human and societal progress hence, they were provided on the basis of social citizenship, whereas other such as old age income security and housing were designed to address new vulnerabilities that arise when a person is disconnected from traditional support systems due to processes of social change.

북한 노인의 경제활동과 소득보장에 관한 연구

북한 노인의 경제활동과 소득보장에 관한 연구

De svenska tjänstepensionsavtalen 1947–2017

[The Swedish occupational pension agreements 1947–2017] The Swedish old age pension system which was launched in 1999 has become increasingly criticized. The new fee defined pensions are not enough to provide a reasonable standard of living for a population that is living ever longer lives. In this situation, occupational pensions (also called contract pensions) have become more and more important if not to say indispensable to the legitimacy and stability of the system. In his article, Klas Amark looks at this important aspect of the Swedish pension system, which despite its central role has been neglected in previous research. Through a broad historical survey of the various occupational pension agreements 1947–2017, he can point out the agreements’ relationship with the public pension system and the changes that characterized the period. In fact, the occupational pensions now guarantee the quality of old age income security for the approximately 93 percent of all employees covered by the schemes. At the same time, they are widening the income gaps in society because they proportionately benefit high-income earners more and those who would need occupational pension best – low-paid workers in insecure and temporary jobs – completely lack coverage. Publication history: Published original. (Published 8 November 2019) Citation: Amark, Klas (2019) “De svenska tjanstepensionsavtalen 1947–2017”, in Arkiv. Tidskrift for samhallsanalys , issue 11, pp. 7–40. DOI: https://doi.org/10.13068/2000-6217.11.1

A study on improvement in coverage in the Korean occupational pension: considering harmony with old age income security system

A study on improvement in coverage in the Korean occupational pension: considering harmony with old age income security system

Organizing old age pensions for India’s unorganized workers: A case study of a sector-driven approach

Abstract About 88 percent of India’s total labor force is composed of informal (officially labeled “unorganized”) workers. As many as 388 million such workers lack old age income security by way of a pension system. The Atal Pension Yojana (APY) is the latest contributory, national-level old age pension scheme for unorganized workers, with an entry age of 18–40 years. In other words, all current unorganized workers above the age of 40 are excluded. How could a national pension system viably guarantee equal pension benefits to all current unorganized workers? This paper considers how such a system might work by offering a case study of a non-contributory pension scheme for building and other construction workers in Karnataka State, India. The results indicate that this state-level pension scheme, fully funded by sector-specific receipts, is financially viable and sustainable with high levels of coverage and adequacy. The robustness of these results is shown via sensitivity analyses of discount rates, inflation rates, and growth rates of specific purpose tax collections. Additional analyses outline the scenarios under which pension benefits could be extended to all informal workers in the sector studied.

Organizing Old Age Pensions for India's Informal Workers: A Case Study of a Sector-Driven Approach

About 88 percent of India’s total labor force is composed of informal (officially labeled “unorganized”) workers. As many as 388 million such workers lack old age income security by way of a pension system. The Atal Pension Yojana (APY) is the latest contributory, national-level old age pension scheme for unorganized workers, with an entry age of 18–40 years. In other words, all current unorganized workers above the age of 40 are excluded. How could a national pension system viably guarantee equal pension benefits to all current unorganized workers? This paper considers how such a system might work by offering a case study of a non-contributory pension scheme for building and other construction workers in Karnataka State, India. The results indicate that this state-level pension scheme, fully funded by sector-specific receipts, is financially viable and sustainable with high levels of coverage and adequacy. The robustness of these results is shown via sensitivity analyses of discount rates, inflation rates, and growth rates of specific purpose tax collections. Additional analyses outline the scenarios under which pension benefits could be extended to all informal workers in the sector studied.

생애 순혜택으로 측정한 국민연금 초기 수급자들의 소득재분배

향후 고령사회에서 노후소득보장의 중요성은 소득양극화로 더 확대될 것으로 예상된다. 우리나라의 대표적 사회보장 제도인 국민연금은 대다수 국민들의 노후 소득보장과 함께 소득재분배를 담당하고 있다. Kim (2002), Kim 등 (2003), 그리고 Hong (2013) 등이 국민연금의 소득재분배 기능이 미흡할 수 있음을 보였지만 최근 Choi (2015)은 그 원인이 국민연금 기본연금액 산식의 구조적 취약점에 기인한다는 의견을 제기하였다. 본고는 현재 국민연금의 약 300만 노령연금수급자를 중심으로 개인별 이력자료와 2013 재정계산의 장기재정추계에서 관련 세대의 2014년 이후 수급에 대한 분석으로 국민연금 초기 수급자들의 생애순혜택에 의한 소득재분배 측정 결과를 제시하고 있다. 수급자 이력자료에 나타난 소득대체율로 측정한 소득재분배는 누진적이지만 그것은 초기 가입자들의 특성상 소득분위별 가입기간의 차이가 적기 때문인 것으로 설명된다. 남은 생애기간에 대한 급여를 장기재정추계 모형으로 보완하여 측정한 생애 순혜택은 크게 역진적으로 나타난다. 소득계층별 가입기간의 차이가 더 큰 이후 세대들에서는 그 역진성이 더 확대될 것으로 예상되어 국민연금의 소득재분배에 대한 재검토가 요청된다. The importance of the old age income security will increase for an aging society due to the deepening income polarization. The National Pension(NP) is a representative Social Security scheme in charge of old age income security as well as income redistribution for the insured. Studies by Kim (2002), Kim et al. (2003), and Hong (2013) have reported the possibility of unsatisfactory income redistribution of the NP. Recently Choi (2015) attributed those results to an unnoticed defect in the benefit formula. This study is a test for the unsatisfactory income redistribution of the current National Pension using early participants who have now become pensioners. The method aggregates cohorts and combines individual history data before the year 2013 and the results of the actuarial projection model of the 2013 after the year 2014. The results are divided by measures taken. The redistribution is obviously progressive by the income replacement rate; however, it is significantly regressive when measured by the net benefit theoretically as more plausible. Considering the effect of differing lifetime contribution year among income classes, the regressive redistribution will prevail more in the future pensioners.

2015년 공무원연금 개혁의 평가와 향후 개편방향

This study evaluates and suggests a new reform plan that overcomes the limitations of the Government Employees Pension Scheme (GEPS) reforms in 2015. Research results indicate that the reforms were insufficient in terms of financial sustainability, functional transparency, and equity. Debates on the GEPS reforms will continue until an equitable solution is found. The priority of the next reform plans should lie in the unification of public pension schemes. In contrast to previous reform proposals, this study suggests a reforms plan, which should result in not the parametric change but the structural change in GEPS. The distinctive point of the new reform plan lies in translating a single-tire into a multi-tire pension system. Accordingly, the new GEPS should consist of a `National Pension Scheme (NPS)`, occupational pension (additional pension), and retirement allowance. Newly appointed government employee officials should be enrolled in the NPS. This study stresses that inequality between the public pension systems will be alleviated and a pension system of social solidarity will be established when the NPS develops in to a basic old age income security system for all citizens including civil servants.

The Examination of Construction Status on Multi-pillar System for Old Age Income Security in Korea

The Examination of Construction Status on Multi-pillar System for Old Age Income Security in Korea

The ‘Trojan Horse’ of Old Age Income Security System Retrenchment in Korea : the Examination of Policy Changes on Basic Old Age Pension for the Rich

The ‘Trojan Horse’ of Old Age Income Security System Retrenchment in Korea : the Examination of Policy Changes on Basic Old Age Pension for the Rich

A Comparative Study on Multi-pillar Old Age Income Security under Contributory Basic Pensions: Comparisons between the UK and Switzerland and the Application to Korea

A Comparative Study on Multi-pillar Old Age Income Security under Contributory Basic Pensions: Comparisons between the UK and Switzerland and the Application to Korea

The Future of Old Age Income Security

Global ageing and urbanization are among the major challenges facing countries around the world. This paper, based on a revised version of the Robert Butler Memorial Lecture delivered at the International Centre Global Alliance Symposium on ‘The Future of Ageing’ on 21 June 2013 in Singapore, focuses on three aspects. First, it examines the global ageing trends and their implications based on the 2012 Revision of the UNDESA’s World Population Prospects projections. Second, it summarizes selected studies projecting additional expenditure on pensions and health care which may be needed in the future. The projections suggest that additional resources which would need to be generated, at the time when medium term growth prospects are subdued, would be significant, in the range of 2 to 5 percent of GDP. Given constrained tax policy autonomy and high locational elasticity of businesses and individuals, raising resources, i.e. funding for financing aging, and designing financing-mix between various sources and sectors, have acquired greater urgency. So the third section briefly outlines how countries could address funding and financing challenges, including developing capacities to access non-conventional sources such as making more productive use of state assets.

English

Market and state based pension schemes in Ghana tends to be better adapted to formal conditions and this limits the participation of majority of the populace especially those in the informal sector of the economy. In cases where “an all inclusive” schemes are developed, no special consideration is made to better integrate low income earners or workers in the informal sector into such pension schemes. Informal workers and their respective households run high risks of falling into old age income insecurity trap. However, long term savings products like micro pensions which is a rather new concept has been developed to bridge the gap and inefficiencies in the open market and state based pension’s schemes in providing old age income security for low income earners. The study was a hypothetical exploratory research to identify underlying factors explaining four urban informal groups (beauticians, drivers, vegetable farmers and woodworkers) decision to participate in a Micro Pension Scheme. A Binary Logit regression model was subsequently used to estimate the factors influencing the participation decision. The survey found a high (87.75%) willingness to participate among the urban informal workers. The empirical results of the Binary Logit model reveal that socioeconomic variables including age, years of schooling, marital status, household size and health status, other income sources, assets, investments, and taxes/levies were important in explaining the decision of an urban informal worker to participate. At the individual economic activity level, having a driving license or being a private mini-bus transport driver or taxi driver has a negative influence on willingness of drivers to participate. In the case of vegetable farmers, location of production as well as rearing livestock alongside crop production also has a negative influence on participation. Further, the results indicate that the woodworker producing for the local market has a positive influence on a woodworkers’ willingness to participate in the scheme. These results have policy implications for the development and the design of Micro Pension Schemes for the informal sectors in developing countries

Closing the coverage gap: the role of social pensions and other retirement income transfers

The book has four specific objectives: (a) to discuss the role of retirement income transfers in the context of a strategy for expanding old- age income security and preventing poverty among the elderly; (b) to take stock of international experience with the design and implementation of these programs; (c) to identify key policy issues that need to receive attention during the design and implementation phases; and (d) to offer some preliminary policy recommendations and propose next steps. The chapter one discusses the rationale for retirement income transfers. The main justifications are the limited coverage of the mandatory pension systems (chapter two) and the risk of poverty during old age (chapter three). Chapter four then examines the rights, based approach to expansion of social security coverage based on the conventions and recommendations of the International Labor Organization (ILO). The middle part of the book deals with international experience. Chapters five, six, and seven reviews selected programs in low-income, middle-income, and high-income countries, respectively, and chapters eight and nine discuss in greater depth the cases of Japan and the Republic of Korea. The five concluding chapters are concerned with policy issues as related to design. Chapter ten presents a typology of retirement income transfers and analyzes the potential economic impacts of the programs. Chapter eleven deals with financing mechanisms and the problem of allocative efficiency, given limited resources. Chapter twelve addresses two key issues related to institutional arrangements and targeting systems: Should countries consider separate programs to target the elderly poor instead of using the general social assistance system to target all poor? And, how can current proxy means-test systems be adapted to target the elderly poor? Chapter thirteen explores in more detail the links between social pensions and matching contributions in the context of a general strategy for expanding coverage. Finally, chapter fourteen provides guidelines for the design of the administrative systems needed to operationalize the various programs. The remainder of this overview summarizes the main messages from the subsequent chapters and outlines an agenda for future research and policy analysis. For clarity, it starts by presenting some definitions pertinent to the retirement income transfers discussed in the book.

Ideas, Institutions, and Welfare Program Typologies: An Analysis of Pensions and Old Age Income Protection Policies in Sub‐Saharan Africa

AbstractSince the 1980s, social policy research shifted attention from institutional development of welfare programs to what were described as crises of the welfare state in an era of austerity. Much of the scholarly debate in this area had focused on the maturation of welfare programs, especially the post‐war old age income support programs in the advanced industrialized countries to the neglect of social protection in Sub‐Saharan African (SSA) countries. This paper is intended to bring the dynamics of social policy in SSA countries into the comparative welfare dialogue and into the global social security debate in particular. Using a historical institutionalist approach, this study analyzes the trajectories of old age income support development in SSA countries through a careful study of old age income security or protection strategies in the region across time and space. The paper develops ideal typologies for understandings variations and transformations of pensions and old age income provision programs in the region. In doing this, it argues that the ideas and institutions around which recent rounds of pension reforms revolves have always been at both the foreground and background of old age income protection thinking and practices in SSA countries since the pre‐colonial era.

Rethinking Social Security in Latin America

In the past decade, many Latin American governments have radically restructured their old age income security systems, following the lead of Chile, which undertook its major pension reform in 1981. The defining characteristic of the reforms has been a shift in the basis of public pensions from social to individual responsibility: instead of the widely used system that “collectivized” or pooled the risk of being without the capacity to earn while aged, numerous countries in the region have adopted a system that relies on individual savings accounts. The reforms have maintained a role for a modified version of public pooling; this combination of individual and social savings to finance pensions is known as the “multipillar” approach. This article is based on a report prepared for the Office of the Chief Economist of the Latin America and Caribbean Region of the World Bank (Gill, Packard and Yermo, 2004).1 The report recognizes that the system of individual accounts, the essential aspect of the reform, has been a necessary and positive development, and one that is consistent with the economics of insurance and social welfare objectives. Beyond this recognition, however, the results of reform are much more complex. Each country has implemented its own version of the multipillar system. The article therefore draws on country evidence in order to determine: How has the new approach to public pensions in Latin America fared? In particular, have the changes left workers and their families in reform countries better off? The first section provides a brief description of the reforms. The second discusses the main macroeconomic concerns and effects. The third describes the impact on coverage levels, and other social welfare implications. The fourth evaluates the stagnation of coverage levels and presents various possible explanations. The fifth makes specific proposals to improve the multipillar pension system in Latin America. The last section concludes.