ABSTRACT

Most of developed countries including Korea have adopted the chronological age of 65 years as anarbitrary definition of old age. The age of 65 years would be matching with the pension eligibility ageand/or retirement age. There is a high possibility of facing a serious risk of financial crisis in Korea inthe near future owing to the rapidly aging population aging. For instance, the working-age population is gradually declining and the dependency ratio is getting higher and higher, resulting in very high likelihoodof socioeconomic crisis. In order to alleviate the crisis, the government should make and enforce moreassertive policies as early as possible than any other time. First of all, the policies should focus on raisingthe retirement age and/or pension eligibility age.