Kyungsilryeon: "Yoon Government's Pension Reform May Only Enrich Financial Companies... Needs Reconsideration"

"Careful Consideration Needed Considering the Level of Retirement Income Security"

The Citizens' Coalition for Economic Justice (CCEJ) expressed concerns about the pension reform direction announced by President Yoon Seok-yeol, stating that it "may overly emphasize fiscal stability and end up enriching only financial companies."

CCEJ released a statement containing these views on the 30th. President Yoon Seok-yeol revealed the direction for advancing four major reforms, including pension reform, during a government management briefing held the previous day. The core aspects of the pension reform include differentiating National Pension insurance premium rates by age, introducing an automatic stabilization mechanism, and revising the basic pension reduction regulations.

In response, CCEJ argued, "The National Pension reform direction announced by President Yoon weakens income security for low-income middle-aged groups," adding, "On the other hand, increasing insurance premiums and fiscal stabilization measures to expand the fund may only fatten the financial companies that manage the funds."

They stated, "Differentiating insurance premium rates by age is a bizarre policy with hardly any precedent worldwide and should be reconsidered," and "The automatic stabilization mechanism is premature to introduce in our country, which lacks a clear blueprint for old-age income security."

Furthermore, they said, "While revising the basic pension reduction regulations is reasonable given the high public distrust in the system, expanding tax benefits for private pensions is an unjustifiable policy that benefits only private financial institutions and high-income groups."

They added, "Introducing a guarantee provision for National Pension payments is not significant enough for the president to mention," and warned, "If only the interests of high-income groups and financial companies are protected, it will face public resistance and the Yoon Seok-yeol administration's pension reform cannot succeed."

CCEJ emphasized, "The reform direction, which undermines trust in the system and disregards the inadequate level of old-age income security, must be carefully reconsidered," and stressed, "The detailed pension reform measures to be announced soon should present plans that consider both old-age security and fiscal sustainability."