• The Journal of the Korea Contents Association
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• v.21 no.9
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• pp.234-244
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• 2021

The purpose of this study is to investigate the effect of the retirement pension system on workers' retirement income security and job commitment, and to verify the mediating effect of corporate welfare satisfaction in the relationship between the retirement pension system's retirement income security and job commitment. Employees of domestic K-company, which have been implementing the retirement pension system since 2011, were surveyed, and 403 copies of the final data were analyzed using SPSS 22.0. The analysis results are as follows. First, as the sub-factors of the retirement income security, the guarantee of the retirement benefits right and the income replacement rate had a significant positive(+) effect on job commitment. Second, as sub-factors of the retirement income security, the income replacement rate and customized retirement design had a significant positive(+) effect on corporate welfare satisfaction. Third, corporate welfare satisfaction had a significant positive(+) effect on job commitment. Fourth, it was found that the relationship between the income replacement rate and job commitment, which are sub-factors of retirement income security, is mediated by diversity and the level of benefits, sub-factors of corporate welfare satisfaction. Based on the results of this study, it was confirmed that the implementation of the retirement pension system enhances the employee's job commitment and corporate welfare satisfaction, and is also important for corporate management.

• The Korean Journal of Applied Statistics
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• v.28 no.4
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• pp.763-779
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• 2015

This study estimate the adequate replacement rate of retirement income by income brackets and suggests roles of pension and non-pension income sources to achieve it for each income bracket. Priori research focused on elderly poverty; however, there has been little discussion about an adequate income level for retirement. We calculate an adequate income replacement rate separately for the poor, middle, and high income group as well as the average level of replacement rate for all groups. We also investigate the gap between the adequate income replacement rates and realized rates, and propose roles for each income source to curtail the gap. It is essential to recognize that the adequate income for retirement is unable to be met only by an annuity. To emove the gap, it is vital to utilize non-pension income although annuity is a primary source for retirement. Especially, the public and private pension plays a role to overcome poverty and live affluent in retirement, respectively.

• Korea Real Estate Review
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• v.28 no.3
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• pp.53-64
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• 2018

OECD countries have been stimulating private pensions instead of public pensions because the financial stability of public pensions has been threatened by the aging population. Korea, which has the fastest aging population in the world, has been following the recommended policies of major countries. Unlike major economies, however, most of Korea's household assets are composed of real estate assets. Due to the economic and social importance of real estate assets in Korea, the wealth effect of real estate has been used as a major tool in macroeconomic policy. This study analyzed the effect of real estate value changes on the contribution of private pensions (personal pension + retirement pension). Utilizing a two-way, fixed effect model with the balanced panel data of the National Survey of Tax and Benefit, empirical results presented that the private pension contribution increased by 0.171% when the value of real estate increased by 1%. Thus, real estate value changes were analyzed as positive for retirement preparation through private pension. These results suggested that if the real estate market would shrink in the future, consumption would decrease, and the degree of preparation for retirement might be smaller.

• Management & Information Systems Review
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• v.36 no.1
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• pp.215-232
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• 2017

[Purpose] The purpose of this study is to point out the issue of pensions and retirement income tax which were amended from 2012 to 2016 and present a rational and intellectual improvement to this issue. [Methodology] This study was carried out a literature survey about the tax laws of pension income and retirement income. In order to confirm the differences between the case-by-case tax burden, calculated the effect of tax burden by presenting the examples in the case of retirement income. [Findings] It is necessary to apply the differential multiples in accordance with the seniority when leaving the company rather than applying the five times or 12 times in the tax base as the current retirement income tax. Also, It should be given the flexibility of pension income to ease the requirements of inevitable temporary receipt of a pension income. In addition, it is needed to expand separate taxation threshold which is current 12 million won. Finally, the annual limit of tax incentives for IRP should be increased significantly more than the current 7 million won. [Implications] The improvement of the study is to offer suggestions on the revision of retirement income and pension income taxation to the tax authorities or National Pension Service and retirement pension providers. The result of this study is expected to be used as reference to develop policy options on the legislative process.

• Journal of Labour Economics
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• v.38 no.4
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• pp.1-29
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• 2015

The Individual Retirement Pension (IRP) enables workers to continuously receive a retirement pension even when workers change their jobs in different companies and so it performs a bridge fund as the complimentary living expenses until they receive government public pension. Although the Korean government has forced workers to maintain an IRP account until their retirement age and to close their accounts only when they want to do so, it is not clear to measure its really effectiveness and, in fact, most of IRP accounts have been terminated immediately after the changes of their jobs. In this respect, IRP has not performed the bridge role for the future retirement pension income. We provide an economic decision-making model of both government and workers, where the retirement benefits related with the IRP are explicitly considered. Our model is required to select specific severance pay systems to maximize the income security and stability for their future old ages. It is concluded that the need of workers on the severance pay system is automatically revealed into the switch to IRP when workers are out from their current jobs, which is equivalent to the effect of gradually unifying the dual system of the retirement payment. In additoin, our empirical data indicates the relatively higher probability of termination on IRP for the older male workers having the more retirement deposit.

• Korean Journal of Social Welfare
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• v.57 no.2
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• pp.375-403
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• 2005

This Study reviews theoretical argument about the effect of retirement earnings test on the labor supply of the aged which is controversial issue in OECD countries and analyze the effect on the incidence of re-employment, re-employment period of suspended officials and the possibility of re-retirement through Government Employment Pension Corporation data. It consists of 178,363 public officials who received pension benefit or disability pension in January 2005. The main result of this research shows that public officials re-employed were 8,086 which is 4.5% of total retired, and median survival time of suspended pension payments is 3.3 years. Also the median re-employment period of 100% suspended officials is about 20 month shorter than that of 1/2 suspended officials and it is shown in regression analysis that the possibility of re-retirement by 100% suspended officials is statistically significant higher than those of 50%. It specially expects greater influence if includes in case taking lump-sum or no making effect of re-employment because current system withhold pension payments even by earned income itself. Therefore, this analysis suggests suspension of pension payment properly applied according to the age and income together with "Delayed Retirement Credit" or "Partial Pension" for developmental alternatives of civil servant's suspension of pension payments. Furthermore, It is urgently needed that distinctive quality data about re-employment including earnings to perform deep-empirical research for effective policy. Lastly, it is extremely necessary to reinforce management system of Government Employment Pension Corporation.

• Proceedings of KOSOMES biannual meeting
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• 2018.06a
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• pp.52-52
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• 2018

• International journal of advanced smart convergence
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• v.10 no.3
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• pp.105-112
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• 2021

This study was conducted on 878 retired women in their 50s and 60s across the country using the 7th data from the National Pension Service's KReiS. We used SPSS WIN 18.0, and the analysis results are as follows. First, there were many highly educated people in their 50s or older and those in their 60s and undereducated. Second, families in their 50s had the largest number of members with more than three, while households in their 60s had the largest number of two. Third, both age groups chose themselves and their spouses as responsibilities for preparing for retirement. In addition, more people in their 60s chose the government as their responsibility for preparing for retirement than in their 50s. Both people in their 50s and 60s say they are "not prepared" to prepare for retirement expenses, raising concerns about elderly poverty. Fourth, economic strength, health, and medical care were important for retirement in both age groups as part of their preparations for retirement, and they chose economic strength, health, medical care and job as the things to do in society. Fifth, both people in their 50s and 60s have very low public and private pension subscription rates, requiring special attention from the government and society to their old age. Judging from the above results, both women in their 50s and 60s have retired, but preparations for retirement are very insufficient. Therefore, the government and society need to strengthen the public pension system and create jobs for the elderly.

• Journal of Digital Convergence
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• v.13 no.4
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• pp.137-146
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• 2015

The aging process in this country is underway at the fastest pace compared to those of the leading countries. On the other hand, preparing for retirement funds is more difficult than before due to the impact of slow interest rate and slow growth. The purpose of this study is to examine the necessity of providing various financial services in preparation for the future aging era. After analizing the various materials and utilizing a survey of the bank employees and the general public, we have found the followings. The replacement rate of this country, 55%, is much lower than the suggested level of World Bank, 75%. Also, the pension ratio in the income after retirement of this country is much lower compared to those of the States and Japan. The most people who participated in the survey needed ￦2,000 - ￦2,990 thousand for monthly living expenses after retirement. For the retirement funds, the higher the age the higher proportion of savings deposits they want, and the lower the age the higher proportion of insurance and pension products they want. Based on these analyses, the necessities of developing financial life planning which includes both financial and non-financial sides, retirement funds management according to age, revitalization of housing pension and developing diverse retirement funds are suggested.

• Journal of the Korean Data and Information Science Society
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• v.24 no.6
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• pp.1385-1400
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• 2013

This paper discusses income replacement ratios of national pension, retirement pension and individual annuities in Korea. These ratios are useful indicators for the assessment of retirement income security of workers. This paper projects income replacement ratios, using the pension entry rate, decrement rates, and life tables of the National Statistical Office. The result of the actuarial projection is that the income replacement ratio of national pension is approximately 21.0 to 22.7%, that the income replacement ratio of retirement pension is about 5.8 to 9.7%, and that the income replacement ratio of an individual annuity is about 13.5 to 21.0%, respectively. The income replacement ratio by income varies due to the effects of income redistribution in national pension and retirement pension, but the income replacement ratio of an individual annuity is constant, regardless of income.