A Study on the Old-age Income Security System and Elderly Poverty in European Welfare States

Abstract

This study focuses on the characteristics of the old-age income security system and the level of poverty and inequality among the elderly in eight European countries that have handled old-age risks relatively well since World War II: Sweden, Finland, the Netherlands, the UK, Germany, France, Italy, and Greece. Through our analysis, we sought to gain implications for Korea, which is currently undergoing pension reform. We used data from the OECD, EU, and MISSOC to take an organized look at the structure, characteristics, and adequacy of retirement income security systems in eight European countries. In addition, raw data from the EU-SILC and Statistics Korea's Household Finance and Welfare Survey were used to analyze the income composition of elderly households as well as the trends of poverty and inequality among the elderly in the eight European countries and Korea. Through this study results, we aim to provide implications for deriving alternatives for establishing a retirement income security system to overcome the so-called ‘pension trilemma’ of reducing poverty and inequality among the elderly, improving intra- and inter-generational equity, and securing financial sustainability.