South Korea’s debate over retirement-age policy is resurfacing as the country continues to deal with population aging. Multiple reports say the issue has gained attention after the ruling Democratic Party of Korea (DPK) floated raising the retirement age from 60 to 65. The DPK is described as moving cautiously because the change is closely linked to employment opportunities for younger workers. The discussion centers on how to support longer working lives for older people while avoiding potential downsides for youth hiring. In South Korea, a retirement age of 60 is widely used across the public sector and most private companies, though some firms set different limits under labor-management agreements. A major factor is the “income cliff” created by the gap between retirement and eligibility for the national pension. Pension eligibility depends on birth year, with eligibility at 60 for those born in 1952 or earlier and at 65 for those born in 1969 or later. For workers in later birth cohorts, the period between retirement and pension eligibility can extend to five years without national pension payments.
Korea debates raising retirement age amid concerns about youth job prospects
South Korea’s debate over retirement-age policy is resurfacing as the country continues to deal with population aging. Multiple reports say the issue has gained attention after the ruling Democratic P...
- South Korea is debating whether to raise the retirement age from 60 to 65.
- The renewed discussion follows a proposal floated by the ruling Democratic Party of Korea.
- Supporters argue it helps older workers stay employed longer, while critics warn it could reduce youth job opportunities.
- A retirement age of 60 is common in the public sector and most private companies, though some firms set different ages under labor-management agreements.
- The national pension eligibility age varies by birth year, creating an “income cliff” between retirement and pension payments that can last up to five years for some cohorts.
In Korea's superaged society, where those aged 65 or over account for more than 20 percent of the total population, a renewed debate has emerged over what the retirement age should be. The discussion resurfaced last month after the ruling Democratic Party of Korea (DPK) floated the idea of raising the retirement age from 60 to 65. The party, however, is taking a cautious approach and avoiding railroading the policy plan since it is closely related to youth employment. The issue now is balancing longer careers for older adults with the potential cost of fewer job opportunities for young workers. Income cliff A retirement age of 60 is usually observed in the public sector and most private companies, although some companies set their own ages under a labor-management agreement. At the heart of the issue is the income cliff between the retirement age and the national pension eligibility age, which ranges from 60 for those born in 1952 or earlier to 65 for those born in 1969 or later. For those at the higher end, that gap can mean five years without receiving national pension payments after re
2 hours agoIn Korea, a superaged society where those aged 65 or over take up more than 20 percent of the total population, a renewed debate has emerged over what age should be set for retirement. The discussion resurfaced last month after the ruling Democratic Party of Korea (DPK) floated the idea of raising the retirement age from 60 to 65. The party, however, is taking a cautioned approach and avoiding railroading the policy plan since it is closely related to youth employment. The issue now is balancing longer careers for the elderly with the potential cost of fewer job opportunities for young workers. Income cliff The retirement age of 60 is usually observed in the public sector and most private companies, although some companies set their own ages under a labor-management agreement. At the heart of the issue is the income cliff between the retirement age and the national pension eligibility age, which ranges from 60 for those born in 1952 or earlier to 65 for those born in 1969 or later. For those at the higher end, that gap can mean five years without receiving national pension after retiremen
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