How much is a baby worth? A $75,000 bonus, this South Korean firm says. – msn/WaPost
“South Korea’s fertility rate has ticked stubbornly downward for years, getting ever further from the replacement rate of two children per woman required to keep a population stable without migration. The chronically low birthrates have sparked concerns about aging populations — and the health care and pension costs that come with them — and the resulting increase in the welfare burden. Despite aggressive government efforts, South Korea’s fertility rate is on course to sink further to 0.65 by 2025, according to official estimates by Statistics Korea.
“This is largely due to the stress put on women, who face enormous societal pressure and rampant workplace discrimination if they want to pursue a career while having children, experts say. South Korea ranked 105th out of 146 countries in terms of gender parity last year, according to the World Economic Forum’s Global Gender Gap Report. The country’s population, currently 51.6 million, is expected to decline by 30 percent to 36.2 million. But even worse, the composition of the population is expected to become markedly older.”
Tragicomedy of the commons? Couples can increase their wealth by having fewer children. But fewer workers can restrict economic growth and undermine social security systems:
S. Korea NPS depletion forecast bolsters calls for reform – Pensions & Investments
“Pension systems in nations with aging populations around the world have been grappling with similar issues, said Andrew Hendry, Singapore-based head of distribution for Asia ex-Japan at Janus Henderson Investors, which had $275 billion in assets under management as of Sept. 30.
“‘In France, the whole of Europe knows the retirement system is going to run out of money. They’re trying to do as much as possible short of raising taxes and contributions to try to fix it. But it’s politically sensitive,’ he said.”
Social Security to Make Major Payroll Change – Newsweek