A Comparison of Citizen Perceptions of Ageing and Pensions

Abstract

In this article, I compared and analyzed public perceptions regarding population aging and pensions in 10 countries, including Korea. Several key findings emerged. First, the perception that an increasing elderly population negatively affects economic growth was strongest in Korea. Second, concerns about the impact of raising the official retirement age on youth employment were notably lower in Korea than in Italy, where labor market participation among older adults was the lowest. Third, there was broad agreement in Korea on the need for pension retrenchment for both current and future pensioners. Fourth, Korea had the highest level of support for raising the official retirement age, likely due to a stronger desire among Koreans to stay in work longer amidst uncertainties related to old age. Lastly, agreement with early retirement was lower in Korea than anywhere else, and the pension reductions incident to early retirement had a minimal effect on decisions about early retirement. These findings suggest that the ways in which different countries manage public pensions in response to population aging differ depending on their socioeconomic conditions and that, for Korea, efforts to improve pension schemes must be supplemented with measures meant to promote the labor market participation of seniors.