Income Transfers to the Elderly in Korea and Taiwan

Abstract

This article analyses income transfers to elderly households in Korea and Taiwan in order to find out to what extent income maintenance policy contributes to the income of elderly households in these countries. It also examines private transfers to those households since we need to see the outcome of public policy in the broad picture of welfare mix. The article argues that private transfers play a bigger role than public transfers for elderly households. The poorer households are more dependent on private transfers. Nevertheless, private transfers failed to help the elderly escape poverty. It shows that elderly households in general and single- and couple-only households in particular are far more prone to poverty that the general population. Although state pensions are expected to play a bigger role in the future after coming into full operation, public policy has so far failed to improve the living standard of the elderly. This outcome of the research calls for urgent policy intervention to protect the elderly in the wake of the economic crisis in Korea and the massive earthquake in Taiwan.