2023-09-03 08:23:01
▲ The People’s Movement to Strengthen the Public Pension, composed of labor, civic and social groups, is protesting in front of COEX in Gangnam-gu, Seoul, where a public hearing on the reform of the national pension was held on the 1st, saying, “Pension reform without strengthening the guarantee is a deterioration.” The gist of the pension reform bill put forward by the National Pension Financial Calculation Committee the other day is ‘Let’s pay more and receive the current amount later’. The reality is that if a 20-year-old this year is to be able to receive a pension even following turning 90, it is difficult to see other points. It is also an option that is difficult for the public to accept. This is why successive governments have not been able to touch it for 25 years. The will and ability of the Yoon Seok-yeol administration, who said, “I will definitely do it even if it is not popular,” became extremely important.
The Financial Calculation Committee proposed raising the pension insurance premium rate from the current 9% to 15% by 0.6 percentage points from 2025. The pension eligibility age, which will be 65 in 2033, has also been raised to 68 by continuing to raise it by one year every five years. The ‘money to be received’ (pension), which had the biggest disagreement, was not touched. This is because raising the pension amount offsets the effect of the premium increase on the pension finance side. Even now, it is an ‘pension for pocket money’, but it is a matter of protesting that it makes sense to raise only the money paid and leave the money received as it is. The driving force behind pension reform ultimately depends on whether or not this resistance is overcome. More practical measures for old age security should be devised, such as a more drastic expansion of the credit system that recognizes military service and childbirth as a pension payment period, a drastic increase in the amount of pension while reducing the number of people eligible for basic pension, and a revamped income reduction system that many dissatisfied with.
Discussions on extending the retirement age should also begin in earnest. If you pay more and receive your pension later, the already long ‘crevas’ (the gap between retirement and pension age) can be longer. France also extended the pension payment period by one year and delayed the retirement age by two years to 64. Extending the retirement age is a challenge no less difficult than pension reform due to sharp intergenerational interests. Even so, it cannot be avoided. As promised, the government must present a compressed government plan next month and put pressure on the National Assembly. You must never step on the footsteps of the Moon Jae-in administration, who threw out the ‘death line’ and made it null and void.
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