Reforms of Retirement Policies: Three Common Paths in Aging in Japan and Korea

Faced with an unparalleled rate of population aging, Japan and Korea have been reforming their retirement policies. To date, however, while the age of mandatory retirement has increased, employees continue to face significant decreases in compensation and other working conditions, typically at age 60 in Japan and age 55 in Korea. Three factors have contributed to shaping the path of the policy reforms in both the countries, including (1) the productivist welfare regimes, (2) the structure of the labor market for young workers, and (3) seniority-based wage and compensation systems.