Elderly people gathering at Tapgol Park in central Seoul to spend their free time. (Yonhap)
SEOUL, Nov. 16 (Korea Bizwire) — Experts are increasingly concerned over the issue of senior poverty caused by a lack of pension programs and other senior welfare policies as South Korea is becoming an aging society at twice the speed of Japan.
The Korea Economic Research Institute (KERI) conducted a survey of 500 senior respondents over 65 years of age from South Korea and Japan, which showed that fewer South Korean seniors receive pensions than their Japanese counterparts.
In South Korea, 83.9 percent of seniors were found to receive public pensions, while 21.8 percent received private pensions.
In Japan, 95.1 percent of seniors received public pensions, while 34.8 percent received private pensions, which was more than 10 percentage points higher than in South Korea.
The average value of montely pension payments in South Korea stood at 828,000 won (US$701), which was merely half of that reported in Japan (1,644,000 won).
Similarly, households with a married couple in South Korea received 1,384,000 won in monthly pension payments, which amounted to a mere 50.8 percent of the same figure in Japan (2,726,000 won).
“Japan has a system in place that ensures stable income for seniors since they pay more to receive more than in South Korea,” the KERI said.
“Tax subsidies for private pensions in South Korea stand at a mere 19.7 percent, which is much lower than Japan (31 percent) and even the Organization for Economic Cooperation and Development (OECD) average (26.9 percent).”
As for alternative sources of income other than pensions, 17.4 percent of South Koreans relied on their children or other individuals for financial support, while only 3.6 percent of the Japanese respondents said likewise.
H. M. Kang (hmkang@koreabizwire.com)
