By using the overlapping generation model, this paper shows that, in thefuture, household agents would spend more time working during prime- andold-age. Nevertheless, labor utilization rate of the economy is projected todecline significantly, ultimately undermining the potentials of Korean economyand exacerbating the gap between revenue and expenditure of the publicpension system in the future. The paper also reveals that it is advantageous,in terms of sustaining the growth potential, to adjust the pension scheme bycombining an increase of the revenue and lowering of the pension benefit.