Asian Journal of Innovation and Policy

Asian Society for Innovation and Policy (아시아기술혁신학회)
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The Study on Retirement Age Adjustment Reflecting Possible Workability of Elderly Population

  • Jonghoon Park (Department of Economics, Hanbat National University) ;
  • Hyewon Shin (Korea Institute of Civil Engineering and Building Technology)
  • Received : 2023.12.13
  • Accepted : 2023.12.31
  • Published : 2023.12.31
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Abstract

This study aims to discern the determinants influencing the perception of workability among the elderly population and delineate an appropriate retirement age within the labor market context. Employing binary logistic regression, this research utilizes data from the Korea Welfare Panel Study (2008, 2012, 2016, and 2020) provided by the Korea Institute for Health and Social Welfare. The findings indicate that key factors shaping the elderly's perception of workability encompass familial responsibilities (household and marital status) and their levels of physical and mental well-being. Econometric analysis suggests an anticipated retirement age for the elderly population ranging between 67 and 69 years. In addressing labor market demands and informing policymakers, the study proposes deliberations on extending the retirement age for individuals aged 60 to 65. This range serves as a compromise between the identified retirement age of 67 to 69 and the current average retirement age for elderly labor market participants. Bridging the disparity between the perceived workability age and the prevailing labor market baseline is crucial for achieving social consensus. Therefore, any extension of the retirement age should carefully consider both the demand and supply perspectives within the labor market. The study's contribution lies in two main aspects: firstly, presenting a retirement age framework for the labor market that integrates the workability of the elderly population, and secondly, providing evidence-based research outcomes to guide informed labor policies.

Keywords

Acknowledgement

This work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea (NRF-2021S1A5A8070738)

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