SEOUL, June 28 (Korea Bizwire) – The percentage of elderly South Koreans receiving public or private pensions stood at 30 percent in 2016, a government report showed Wednesday.
The report by the Board of Audit and Inspection (BAI), which analyzed data by the NPS and private insurance companies, showed many people remaining unprotected by the country’s social security net, although measures are being taken to correct the situation.
The government expects the coverage will likely rise to 37 percent in 2020, 42.3 percent in 2030 and 55.5 percent in 2040.
The numbers exclude the so-called basic pensions provided by the government for all people over 65 years old and who are in the lower 70 percent of the income bracket. Seoul currently gives about 200,000 won (US$175) per month per person under the basic pension plan, with the total to rise to 250,000 won next year and 300,000 won in 2021.
The latest findings then showed 82.1 percent of people aged between 38 and 63 who are in the lower 20 percent income bracket are expected to get no coverage from the national or private pensions when they turn 65.
For those in the lower 20 to 40 percent income group the percentage of pension receivers rises to 48.1 percent.
About 98.7 percent of those in the upper 20 percent of the income bracket, meanwhile, are to benefit from one or both of the national or private pension systems.
The comparable figure for those in the upper 60 to 80 percent of the income bracket was 89.3 percent.