"Reform of the Base Alone Is Not Enough, Must Instill Confidence in Youth"
President Yoon Suk-yeol stated on the 29th regarding the National Pension reform, "It is necessary to differentiate the speed of premium increases between the younger and middle-aged generations," and added, "The state must legally guarantee the payment of the National Pension."
At the 'Government Briefing and Press Conference' held at the Yongsan Presidential Office on the same day, President Yoon said, "The three major principles of pension reform are sustainability, intergenerational fairness, and old-age income security," and emphasized, "We will restore trust in the National Pension through long-term sustainable reform."
President Yoon pointed out that the previous focus on parameter reform alone is insufficient and called for breaking the structural framework. He stated, "It is not enough to extend the fund exhaustion year by 8 to 9 years through parameter adjustments alone," and stressed, "Along with adjusting parameters such as premium rates and income replacement rates, we must increase fund returns and introduce automatic stabilizers to ensure the long-term sustainability of the pension."
In particular, the core is a plan to apply differentiated premium rates by generation to enhance fairness between generations. President Yoon said, "To make the pension sustainable, premiums must be increased, but the speed of increase will be differentiated by generation." For example, if the premium rate increases by 13 to 15%, the middle-aged generation will reach the increase rate over 10 years, while the younger generation will reach it over 20 years, changing the structure to consider intergenerational fairness.
To dispel concerns about fund depletion, a plan to legally guarantee payments by the state will also be pursued. This is explained as a way to instill confidence in young people that "we will also be able to receive it." He also promised to further expand credits so that there are no gaps in pension subscription periods due to childbirth and military service.
President Yoon said, "I promise to raise the basic pension to 400,000 won per month during my term." He continued, "Currently, elderly people receiving a livelihood benefit of 710,000 won per month for single-person households will have their livelihood benefits reduced by the amount of the basic pension they receive," and added, "We will pursue a plan to provide additional payments to compensate for the reduced amount to ensure the elderly's old-age living security."
President Yoon urged, "The government will announce a concrete reform plan as soon as possible," and requested, "Since pension reform is completed through legal amendments, I hope the National Assembly will promptly establish a discussion structure."
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