Youngsters must play bigger role in national pension reform

[Photo by MK DB]

Many pension experts in South Korea believe that the incoming young lawmakers who were elected in the country’s 2024 legislative election held on Wednesday should be at the forefront of national pension reform.

The idea is that they should represent young people who have been marginalized in the pension reform process and take the lead in creating a reform plan that encompasses both the current and future generations.

The current parliamentary special committee on pension reform aims to come up with a pension reform proposal after deliberation before its term expires on May 31st, 2024. But the uncertainty lies in whether the government will accept the proposal, which raises the prospect that will likely renew the reform discussions in the newly elected National assembly. This perspective is reinforced by the fact that neither the ruling nor opposition parties made clear commitments to pension reform during the latest general election.

“The current pension reform plan has lost its effectiveness, and there has been no progress in structural reforms that the parliamentary pension committee promised to pursue,” Hongik University professor of economics Park Myung-Ho said. “In this regard, Korea’s new assembly needs to reinvigorate reform efforts.”

Pension experts see the role of young lawmakers elected in the latest legislative election as crucial.

”Pension reform was sidelined during the latest general election, and there don’t seem to be many lawmakers who will represent the youth,” Yun Suk-myung, a research fellow at the Korea Institute for Health and Social Affairs, said. “It is essential for young lawmakers in the new assembly to actively participate in pension reform.“

Yang Jae-jin, a professor of public policy and management at Yonsei University, also emphasized the importance of considering ways to increase the younger generation’s acceptance of pension reform.”

There are also calls for institutional improvements to reflect the younger generation’s perspectives in the reform process as it is not easy for those in their 20s and 30s to enter the National Assembly.

“Germany formed an expert committee during the pension reform process and included members who represented the views of young people and future generations who are yet to be born,” Yang said, adding, “We should consider ways to include younger generations who are not even eligible to vote.”

“The current discussion is a tilted playing field where the middle-aged and elderly are leading the discussion,” Yun said. “We need an institutional approach that weighs the perspectives of future generations.”

There are also calls for information and education to increase the participation of young people in pension reform.

“There is a serious lack of understanding among young people about the national pension system, which is directly related to their generation,” Park said, adding, “They should be given ample opportunities to learn about the complex pension system and future financial changes before considering reform measures.”

“The problem with the current debate is that young people, who are the beneficiaries of premium hikes, are opposed to them,” Yun added. “It is important to make the relevant debate in the government and the National Assembly transparent and to provide them with enough information to fan their willingness for reform.”