• KDI Journal of Economic Policy
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• v.30 no.2
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• pp.225-270
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• 2008

We analyze macroeconomic consequences of pay-as-you-go (PAYGO) public pension system with a simple overlapping generations model. Contrary to large body of existing literatures offering quantitative results based on simulation study, we take another route by adopting a highly simplified framework in search of qualitatively tractable analytical results. The main contribution of our results lies in providing a sound theoretical foundation that can be utilized in interpreting various quantitative results offered by simulation studies of large scale general equilibrium models. We present a simple overlapping generations model with a defined benefit(DB) PAYGO public pension system as a benchmark case and derive an analytical equilibrium solution utilizing graphical illustration. We also discuss the modifications of the benchmark model required to encompass a defined contribution(DC) public pension system into the basic framework. Comparative statics analysis provides three important implications; First, introduction and expansion of the PAYGO public pension, DB or DC, result in lower level of capital accumulation and higher expected rate of return on the risky asset. Second, it is shown that the progress of population aging is accompanied by lower capital stock due to decrease in both demand and supply of risky asset. Moreover, risk premium for risky asset increases(decreases) as the speed of population aging accelerates(decelerates) so that the possibility of so-called "the great meltdown" of asset market cannot be excluded although the odds are not high. Third, it is most likely that the switch from DB PAYGO to DC PAYGO would result in lower capital stock and higher expected return on the risky asset mainly due to the fact that the young generation regards DC PAYGO pension as another risky asset competing against the risky asset traded in the market. This theoretical prediction coincides with one of the firmly established propositions in empirical literature that the currently dominant form of public pension system has the tendency to crowd out private capital accumulation.

• Journal of Family Resource Management and Policy Review
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• v.12 no.1
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• pp.57-89
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• 2008

Using the data of 'middle-and old-aged people' in the 6th year(2003) of KLIPS(Korea Labor and Income Panel Study), this study compared entirely retired men's income source and amount of income divided by the time of retirement and analyzed the determinants of main income source and amount of income level using Multinomial Logit Analysis and Tobit Analysis. The results of these were as following; First, Entirely retired men has average 1.27 income source and the amount of income from main income source is positioned at 85% of total income. This result indicates the lack of variety to get opportunities of income sources for the living and also means high risk associated with the entirely retired men if he looses the main income source. Second, most of income source of entirely retired men is spouse's earned income or private income transfers, however, if we divide those as timing of retirement and characters of each individual, it is represented that the most of income source is differentiated by the position at labor market during work life and the opportunity for building the wealth, and the possibility of obtaining public pension and public support. Third, the income level depends on what sort of income source the retired men has, this shows that there is not a strong relationship between obtaining a Income source and gaining above the certain level of income.

• Journal of Family Resource Management and Policy Review
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• v.16 no.2
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• pp.123-143
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• 2012

This study, based on a health belief model, examines how baby boomers perceive health and how they are financially preparing for future medical expenses. In addition, the study analyzes which factors influence baby boomers' preparation behaviors for future medical expenses and their perceived sufficiency of the preparation for medical expenses. Through such activities, this study examines baby boomers' current preparation status for future medical expenses, and based on this outcome, will turn the attention of individuals and society toward becoming more concerned with health and increasing health expectancy. For this study, an online survey was conducted targeted at men and women who were born between 1955 and 1963 and live nationwide, and its resultant data were collected. After conducting a 15-day survey in November 2011, a total of 418 questionnaire responses were used for the final analysis. The major findings of this study and their implications are as follows: First, baby boomers' health beliefs and their perceptions of health identified by subjective health conditions were very positive. Second, while there were some partial differences in the influencing factors, health beliefs and perceived health influenced the sufficiency of future medical expenses in the three groups, which were segmented according to how they prepare for future medical expenses-insurance-based, pension-based, and insufficiently prepared groups. Third, the baby boomers selected the national health insurance as the primary means of preparing for post-retirement medical expenses, and backed it up with private health insurance or the national pension. In addition, when baby boomers' perceived sufficiency of future medical expenses were examined, 57.6% of the respondents expressed that their old-age medical expenses were not sufficient. Fourth, in terms of baby boomers' preparation behaviors for future medical expenses, it was revealed that as one recognizes old-age health more seriously, he/she has a higher chance of using insurance and lower chance of using a pension to prepare for medical expenses. Fifth, regarding baby boomers' sufficiency of preparations for future medical expenses, economic factors such as total assets, the sufficiency of retirement assets, and the number of insurance policies, as well as health perceptions, including health beliefs and subjective health conditions, were important influencing factors.

• Journal of Family Resource Management and Policy Review
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• v.16 no.4
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• pp.131-152
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• 2012

The aims of this study were to analyze middle-aged households' financial preparation for retirement. Specifically, this study surveyed the relation between human capital investment for children and the middle-aged households' financial preparation for retirement and investigated factors influencing financial preparation for retirement. Data were obtained from the 3rd Korean Retirement and Income Study (KReIS) in 2009, and a sample of 757 households was selected. The statistical methods were frequency, percentile, mean, standard deviation, ${\chi}^2$, t-test, Pearson's correlation coefficient, and logistic regression analysis. The findings of this study are as follows. First, the percentile of preparation for living costs for old age was 49.9% for the middle-aged households. In terms of the types of preparation for living costs for old age, the results showed 61.6% of personal preparation, 33.9% of pension system, and 1.3% for children and relatives. In relation to the adequacy of the preparations for living costs for old age, preparations made by 57.4% of the middle-aged households were inadequate. Observing the minimum living costs for old age and adequate living costs after retirement for single and couple, the minimum living costs of the middle-aged households was 1.46 million won for couple and 0.91 million won for single. The adequate living costs for old age was 2.07 million won for couple and 1.34 million won for single. Second, there were 757 households with total education expenditure. Of these, 208 incurred annual expenditure on public education, and the annual expenditure for public education was 7.28 million won. There were 170 households with annual expenditure for private education, and the annual expenditure for private education was 2.50 million won. 243 households of middle-aged households had annual expenditure for human capital investment, including both public and private education, with annual expenditure for human capital investment for children of 7.82 million won. Furthermore, in the human capital investment factor, there was a difference in the middle-aged households' financial preparation for retirement according to their annual expenditure for human capital investment including both public and private education. In addition, there was a difference in financial preparation for retirement based on their public education expenditure. Third, in the logistic regression model 1, which included human capital investment, the significant variables affecting the preparation for retirement of the middle-aged households were as follows : annual household income, total amount of annual household income, experience of inadequate living costs, existence of financial assets, total amount of annual household savings, financial independence, adequate living costs (for single) for old age, and human capital investment. In the logistic regression model 2, which included annual expenditure for public education and annual expenditure for private education, the significant variables affecting the preparation for retirement of the middle-aged households were as follows : annual household income, total amount of annual household income, experience of inadequate living costs, existence of financial assets, total amount of annual household savings, financial independence, adequate living costs (for single) for old age, and annual expenditure for public education.

• Korean Journal of Human Ecology
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• v.15 no.6
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• pp.973-984
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• 2006

This study examined the asset allocation of the aged and analyzed the impact variables on the portfolio ratio of different kind of finanical assets. The aged was divided three groups, 55-65, 65-75 and 75 over. The results showed that the aged are not likely to invest on risky asset and their assets composed of mostly real estates and bank account. The study include four different assets, such as liquid asset, risky assets, horne equity and other real estates, which reflects the liquidity problems of households asset allocation for the aged in Korea. The aged who do not participate on stock market are likely to have more liquid assets. Households lived in Daegu, Kwangju, ChungCheong and CheonRa tend to have more liquid assets compared to those in Seoul. Total income is appeared having positive relationship with illiquid assets including stock, bonds, and private pension. Age group with 75yrs over tend to have greater mean of illiquid assets and it may caused by the polarization of assets, which gives intuition for the future study.

• Journal of the Korean housing association
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• v.16 no.5
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• pp.49-56
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• 2005

This study will focus on status and structure of Japanese public reverse mortgage that has been changed since 1980. Especially, on newly introduced long-term supporting system for living fund after 2003. Private housing construction companies studied preceding cases of real estate products with reverse mortgage theory and also induced learning point from the change of Japanese public reverse mortgage market. From this on the purpose of this study is suggesting a better plan for successful reverse mortgage introduction in Korea. The data and articles of Japanese reverse mortgage are used for this study, also reverse mortgage related data are collected from web-site and research reports from the inside and outside of the country. From the total postal survey in September, 2004, the system contents after Year 2003 are described here. As described above, reverse mortgage is a way to support public social pension system and expected to play an important role as an assisting method for stable housing and supporting living cost to the aged. Eventually, it is necessary to find a way for introducing a public reverse mortgage as a welfare system for low income people.

• Journal of Society of Preventive Korean Medicine
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• v.1 no.1
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• pp.137-148
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• 1997

The Serial Securities and the Social Welfare, as the national policy aimed at securing generals' lives, are the policies or systems for the stabilization in lift; especially of law-incomers and workers, for which the povernment has to establish the Social Security System. No wonder the Social Insurance System is a part of the Social Security System and the most important. The Social Insurance System, along with Public Assistance, is underlying the Social Security System. Social Security System includes medical insurance, industrial accident Compensation insurance, national pention insurance and employment insurance. The study is on 'The Oriental Medical Insurance and the Industrial Accident Compensation in the Social Security System' . The rate of industrial accident in Korea marks the highest rank in the world. for laborer, industrial accident do not merely mean the loss of health but the question of the right to live in terms of their loss of opportunity of life. The industrial accident compensation system should be established as the es post facto remedy system to guarantee the injured worker and his/her family's life. The oriental medical insurance system which began to operate in 1987 in Korea is based on unionism and divided into 3 parts; one part for the worker, a second part for the community inhabitants, and a third part for the public service personnel and private school personnel. Today the medical problem must be the most important social assignment to be considered. The medical system of contemporary industrial society has began greatly stood out in relief as a part of social welfare not emphasized on gainings of physicians. Accordingly systematization of the oriental medical insurance was strongly Pursued and it was developed to to the extent of entire nation insurance. Though the history of it is very short, most of the people are getting benefit from the insurance system by the social security system method. This study develops the Oriental Medical Insurance, the Workmen's Accident Compensation Insurance, the Pension System in relation to the industrial accident compensation of Employees, along with the ideas and principles of social insurance.

• Journal of The Korea Institute of Healthcare Architecture
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• v.16 no.3
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• pp.69-79
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• 2010

Canada is a democratic country, yet it keeps a social democratic system in which the government is in charge of welfare of its people. And this is one of the most significant features about the country. Her public and private pension system has been effective since the 1920s, securing its people's fundamental income. In particular, the public medical system applies to its every citizen and performs its role. This system is called the National Medical System as well as "MEDICARE" named after its related law. However, there has been a significant change in the national medical and welfare policy due to the budget deficit. In other words, the policy was mainly implemented to welfare facilities in the past, but the policy changed to a welfare policy for the elderly with a concentration on the support for self-reliance of senior citizens since the reform. The purpose of this study is to provide data and implications for Korea through the analysis of the current situation and distinct features of the housing welfare system in Canada. This study has researched the literature on the subject with an analytic focus on three aspects that are the fundamental frame of the system, essential content (support for self-reliance and facility composition), and distinct features of the housing for the elderly. In other words, they are, first, how the fundamental frame of the housing welfare system for the elderly is composed; second, how the service for self-reliance welfare and facility service are composed; and third, what their scale and distinct spatial features of general houses for the elderly with self-reliance are. A comparative study was conducted in detail on courses and characteristics of the housing welfare system for senior citizens in Canada and the USA of North America. In particular, it reveals the scale and distinct spatial features of public houses for the elderly with self-reliance in British Columbia (BC) which is one of the main provinces of Canada.

• Korean Journal of Social Welfare Studies
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• v.42 no.2
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• pp.71-96
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• 2011

This study explores the characteristics of the delivery system of the New Deal, with a particular attention to the partnerships and welfare governance. The study analyzes the partnerships of the New Deal policy in Britain, which consist of two dimensions of partnerships. The results are: First, the method of the transformation of delivery in central government dimension is the unity of the governmental organizations, Another outcome of reform in the central government dimension is the establishment of the Jobcentre Plus. Second, the characteristic of delivery system in public-private dimension is the contract through competition, which means the introduction of market paradigm. Especially, the reform of the delivery system in the local dimension is to deliver integrated services through the introduction of labour market paradigm in demand-side. The central government also supports the reform in the local level. This study also explores the forms of welfare governance in these dimensions, This study suggests the importance of united services in the Korean welfare to work.

• Journal of the Korean Home Economics Association
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• v.35 no.2
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• pp.65-79
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• 1997

This research is intended for 418 elderly women who reside in Seoul and the National Capital region. the survey and analysis are on the practical behavior related to purchasing decision making of brassieres for elderly women. The purpose of the survey and analysis is to induce contented and rational purchase activity for elderly women; also, to supply the fundamental sources which can support accomplishing scientific and systematic marketing activity to foundation manufacturing business. The main results of this study are as follows; 1. The elderly women tend to decide on purchase of the brassiere subjectively alone than rely on the informants and to listen to sales women's advice more. The younger, more educated and higher income of family, the elderly women tend more to depend on their own subjective sense than others' recommendations and rely on such mass media as TV and magazines for information source. 2) The elderly women tend to purchase their brassieres personally. In particular, the younger, more educated and higher income they tend more to choose their brassieres alone rather than with others. 3) The companions for elderly women's purchase were their daughter, daughter-in-law and friends. The younger, more educated and higher income, they tend more to accompany friends. The older, less educated and lower income, they tend more to be accompanied by their daughter or daughter-in-lay. 4) The elderly women are aware of the trademarks for brassieres. Although most of them know about their brassiere size, the majority of them tend to purchase their brassieres without trying on them. the older, less educated and lower income, they are less aware of trademarks and their brassiere size, and thus are less influential in their purchasing decision making. 5) The places of purchasing on which elderly women rely most for their brassiere are department stores, agent and markets. Other places are private haberdashery's, discount and pension shop. The department stores are most used by the less younger, more educated and higher income, while the markets are most often visited by those older, less educated and lower income, while the markets are most often visited by those older, less educated and lower income. The agent are favored by the medium class old people between two extremes.