Nation should carefully gauge impacts on society and economy
The Supreme Court ruled on Thursday that the maximum age that people are considered physically fit to work should be raised to 65 from the present 60.
The maximum working age serves as a criterion in calculating compensation for people who are dead or unable to work. In a 10-3 vote, the full bench of the top court ordered the family of a drowning accident victim to be compensated based on a lifetime of labor work until the applied age of 65 to determine the indemnity.
The latest ruling should be seen as reflecting the reality that had long been coming. The age eligible for the basic state pension has already risen from 60 to 65. People over 60 are seen commonly at construction sites and other industrial settings.
According to data at Statistics Korea, the labor force participation rate of people over 60 approaches 40 percent. The highest court's ruling is appropriate in this regard. Or it may have come a little too late, given the last upward revision, from 55 to 60, was made as long as 30 years ago.
The decision will, of course, have considerable effects on car insurance premiums and other economic areas. The rise in the maximum working age leads to an increase in indemnity, which in turn pushes up insurance premiums. Relevant agencies should take extra care to keep the financial burden on consumers from growing beyond the acceptable level.
The ruling also draws keen attention because it can be a stepping-stone for the rising retirement age, currently set at 60. Given there have long been calls for raising the legal retirement age, the court's decision is likely to facilitate debate. Those who are working may welcome the possible extension of retirement age, which, however, will aggravate the already severe youth unemployment.
All this explains why the government should carefully examine the ruling's impacts on society and the economy and take measures to minimize side effects. No doubt the nation ought to change what's outdated to better reflect reality. It is also true, however, these changes should occur at a level and pace it can handle.
