Korea’s retirement income system comprises a modest basic pension and a public earnings-related pension scheme with a progressive formula, based on both individual earnings and the average earnings of the insured as a whole.
The overall index value for the Korean system could be increased by:
- improving the adoption of ERSA scheme plans
- improving the level of support provided to the poorest pensioners
- introducing a requirement that part of the retirement benefit from private pension arrangements must be taken as an income stream
- increasing the level of funded contributions thereby increasing the level of assets over time
- improving the governance requirements for the private pension system, including the need for an audit
- improving the level of communication required to members from pension plans
The Korean index value increased slightly from 43.6 in 2014 to 43.8 in 2015 due to a number of small changes.