Pension policy stratifies the older members of society for differences in life course experience. We expect to see differences in class, gender, health status and ethnicity among the elderly. However, the most significant disparities in pensions occur between men and women. Pension policy is designed to provide high pensions for long and uninterrupted labour market participation; this is more prevalent among men than women. The disadvantaged position of older women has received a fair amount of scholarly attention, especially with regard to the high correlation between this population and poverty
This article examines the gender impact of National Pension reforms in the Republic of Korea. The NP was introduced in 1988 and initially it covered firms with more than ten employees. It is a contributory employment-based system which calculates pensions based on earnings and contribution period. The NP expanded its coverage to smaller firms (five or more employees) in 1992, to those in rural areas in 1995, to the self-employed in urban areas in 1999 and to employees in workplaces with one or more employees in 2001.
In 2007, the Korean government introduced an income-tested basic old-age pension scheme paying flat-rate benefits. It also introduced credited pension coverage periods for child rearing and changed entitlement conditions for divorcees and widows and widowers. This paper examines the impact of these policy changes for individuals with shorter working lives and lower wages, for survivors and for the traditional social protection role played by the family in Korea. Findings indicate that the reforms have some positive features. However, the reforms still offer better value for those with higher earnings and an uninterrupted employment history, both of which are more characteristic of male workers. Moreover, the important income security role played by the family is still strongly embedded in the provisions and the protection available to survivors remains weak.