South Korea’s elderly population is grappling with insufficient pension income. (Image courtesy of Yonhap)
SEOUL, Dec. 27 (Korea Bizwire) — South Korea’s elderly population is grappling with insufficient pension income, as nearly half of recipients receive less than 420,000 won ($290) monthly, according to a report released by Statistics Korea on Thursday.
While 90% of the country’s seniors aged 65 and older collect at least one type of pension, more than 30% rely solely on the Basic Pension, which covers just 25% of the minimum living cost.
Aging Society and Rising Poverty
South Korea officially entered a “super-aged society” in December 2024, with seniors accounting for 20% of the population. By 2050, this figure is projected to reach 40%. Despite the growing number of pension beneficiaries—rising from 5.89 million in 2016 to 8.18 million in 2023—South Korea remains an OECD leader in elderly poverty, with a relative poverty rate of 39.7%.
Inadequate Pension Amounts
The average monthly pension payment in 2023 was 650,000 won ($448), a significant increase from 423,000 won ($292) in 2016. However, this remains insufficient, amounting to just half of the minimum living cost for a single household (1.17 million won, or $808).
The median monthly pension was even lower at 419,000 won ($288), highlighting the financial struggles faced by many seniors. Half of pension recipients earn less than this amount, with 35.6% of the elderly relying solely on the Basic Pension, which provides an average of 286,000 won ($197) per month.
Disparities by Age and Pension Type
While 68.2% of seniors receive the Basic Pension, only 48.1% collect National Pension benefits, which tend to be higher. Elderly individuals over 80 have the highest pension coverage rate (92%) but receive the lowest average payment (515,000 won, or $355).
In contrast, those aged 65–69 collect an average of 759,000 won ($523), thanks to longer National Pension contribution periods and the likelihood of receiving multiple pensions.
Challenges Ahead
The report underscores the urgent need for reforms as South Korea’s aging population expands. While the government has steadily increased pension coverage and benefits, the current system still leaves many seniors in financial precarity.
Without significant policy changes, the financial gap for South Korea’s elderly is expected to widen further, posing a challenge for one of the world’s fastest-aging societies.
Lina Jang (linajang@koreabizwire.com)
