Retirement Realities: How Social Security Benefits Compare Internationally

13. Italy: Generous Benefits, Demographic Pressures

Italy's pension system has historically been one of the most generous in Europe, offering high replacement rates and a strong link to final salaries. However, like Japan, it faces immense pressure from a rapidly aging population and low birth rates, leading to sustainability concerns. Reforms have aimed to increase the retirement age and shift towards a more contribution-based system. Italy's case study exemplifies the challenges faced by countries with mature welfare states and adverse demographics, struggling to balance social commitments with economic viability.

14. South Korea: Rapid Evolution in a Developing Welfare State

South Korea's social security system has undergone rapid development since the 1980s, evolving from a nascent program to a more comprehensive welfare state. Its National Pension Service (NPS) is a public contributory scheme, still relatively young compared to Western counterparts. South Korea's experience is valuable for understanding how rapidly industrializing nations establish social safety nets. It highlights challenges like a growing elderly population and a generational gap in benefits, as the system matures.