'Policy Support Essential for Centenarians'

KOFIA holds an int'l seminar on centenarians' later life and the role of financial markets

Domestic financial markets should build a system for securing funds for later life as the average longevity increases, an international seminar was told.
A seminar titled "The Arrival of an Age of Centenarians and Roles of Financial Markets," organized by the Korea Financial Investment Association (KOFIA), took place at the 63 City Convention Center on Sept. 6 with approximately 350 people from parliament, government, business and academic circles in attendance.
The speakers of the seminar included KOFIA Chairman Hwang Kun-ho; Chairman of the National Assembly National Policy Committee Hur Tae-yeol; Financial Services Commission (FSC) Chairman Kim Seok-dong; Prof. Martin Feldstein of Harvard University, who delivered a keynote speech; Edward Whitehouse, who leads the team analyzing pensions in the Social Policy Division of the Organization for Economic Cooperation and Development (OECD); Ross Jones, deputy chairman of the Australia Prudential Regulation Authority (APRA); and Joanne Segars, Chief Executive of the National Association of Pension Funds of the United Kingdom (NAPF).
KOFIA Chairman Hwang said in his opening speech at the seminar, "The effective management of assets through financial markets is essential to help centenarians lead an affluent and stable later life." He stressed policy support measures such as the provision of tax benefits on top of the invigorating of retirement pensions and the spreading of awareness toward the diversifying of investment portfolios with a long-term perspective.
FSC Chairman Kim said in his congratulatory speech that the FSC will strive to create a financial environment in which diverse financial products can be developed and financial services can be made available by upgrading asset management regimes to those of advanced countries in the interests of people of an advanced age to brace for the arrival of an aged society.
Rep. Hur said in his speech, "People, companies and the government should make joint efforts to brace for the arrival of an aged society, and the roles of financial markets are also important."
Prof. Feldstein emphasized that the roles of the private financial markets are important as a means of preparing for later life as the average longevity is on the rise, so financial products with higher profits than those of state and public bonds but with less risk should be made available in terms of asset management.
Whitehouse touched on the diversification of pensions in the private and public sectors on top of the extension of working ages so as to help the elderly lead a stable later life.
Jones said that Superannuation, a retirement program in Australia, accounts for 45 percent of the Australian financial and insurance sectors, having an effect of creating about 60,000 jobs, so Korea needs to implement policies to proliferate retirement funds.
Segars said Korea is required to make it mandatory for employees to subscribe to retirement funds as is the case in the United Kingdom.
Prof. Shin Sung-hwan, of Hongik University, maintained that there should be a guarantee to provide a given minimum of profits accruing from retirement funds, and retirement funds' investments in the stock markets should be allowed.
Ryu Sang-ro, president of Korea Investment & Securities Co., said Korea needs to introduce institutional reform measures such as the development of financial products, tailored to meet the needs of the elderly later life in consideration of investment risk management, the relaxation of the restrictions on the management of retirement funds and the provision of tax benefits.
KOFIA said it plans to aggressively spread awareness of diversifying investment portfolios with a long-term perspective, seek institutional reform for invigorating the retirement fund industry and explore financial and investment products for the protection of the elderly later in life so as to enhance the roles of the financial markets and financial investment markets in order to brace for the arrival of an era of centenarians. nw

KOFIA Chairman Hwang Kun-ho

Photo on Courtesy of KOFIA