Hankyung Jun , University of Southern California
Labor force participation of older males in South Korea is higher than other OECD countries. Elderly poverty rate is also high, indicating the possibility that older adults in Korea need to work more for economic stability. Using six waves (2006-2016) of the Korean Longitudinal Study of Ageing (KLoSA), this study examines the impact of social security benefits on retirement decisions for older adults living in Korea. The regression analysis shows that social security benefits received from the NPS do not play a big role in retirement decisions of the elderly. With the increasing life expectancy, Korean seniors might find pension benefits from the government to be insufficient for later life. Further policy simulations are conducted to find the optimal policy solution, such as changing the retirement age or the net replacement ratio.
Presented in Session 8. Economy, Labor Force, Education, & Inequality