The FSC, on Thursday December 12, announced the government’s plan to improve financial services in response to the ‘Homo-hundred’ in line with the proposed ‘Plan to Strengthen Competitiveness of Korea’s Financial Industry’.
The plan includes 8 major tasks ranging from pension plans to insurance policies.
1. The government will establish a ‘pension portal’ so that consumers can search all relevant information about pension plans such as personal pension policies and estimated pension annuity. The pension portal will be established before the end of next year.
2. The government will establish ‘Future Planning Center(tentatively named)’ which will function as a control tower for education related to post-retirement life planning. The government aims to complete the establishment of the center before the end of next year so that it could provide consulting services and education no later than the first half of 2015.
3. Pension yields will be improved by bringing down pension fee and diversifying pension products. The government plans to revise the Regulations on Supervision of Retirement Pension Plan within next year.
4. The FSC will provide opportunities to secure better life to the middle class and people in their 20s and 30s by developing long-term funds with income tax reduction benefits.
5. Reimbursement-type health insurance products will be developed which old generations can buy with less financial burden by revising the Regulation on Supervision of Insurance Business in the first half of 2014.
6. The government will encourage insurance companies to develop more insurance products which provide comprehensive health care services such as nursing, care for dementia and hospice services.
7. 400,000 additional housing reverse mortgages will be provided within the next ten years in response to the retirement of the baby boomers starting from 2015.
8. The government plans to issue a so called ‘Longevity Bonds’ which pay the principal and interest in accordance with average life expectancy.