The National Pension Service (Image courtesy of Yonhap)
SEOUL, Nov. 6 (Korea Bizwire) — A majority of South Koreans say they do not trust the national pension system, according to a new survey released Wednesday by the Korea Employers Federation (KEF).
In the poll of 1,007 adults conducted by Mono Research, 55.7 percent said they did not trust the National Pension Service, compared with 44.3 percent who said they did. Seventeen percent said they had “no trust at all,” while 38.7 percent said they “tend not to trust” the system. Only 4.7 percent expressed strong confidence.
Trust was markedly higher among older respondents. A majority of those in their 50s (55.8 percent) and 60s and older (62.9 percent) said they trusted the pension program, while only 30.8 percent of people in their 20s, 25.3 percent in their 30s, and 42.6 percent in their 40s said the same.
Roughly seven in ten respondents (69.7 percent) said their pension contributions were a financial burden. That figure was slightly lower among self-employed and voluntary participants, who typically contribute less than salaried workers.
The survey also found strong opposition to a recent amendment to the National Pension Act that will raise contribution rates by 0.5 percentage points annually from 9 to 13 percent by 2029. About 73.4 percent of respondents viewed the increase negatively, while fewer than one in five expressed support.
7 out of 10 South Koreans view negatively the “pay more, receive more” national pension reform proposal discussed by the 21st National Assembly. (Image courtesy of Yonhap)
Concerns about the fund’s long-term viability were also widespread. More than 82 percent said they were worried about the impact of the government’s plan to raise the pension replacement rate to 43 percent beginning next year, citing fears that it could weaken the system’s financial sustainability.
When asked what principle should guide future reform, 30.7 percent said ensuring fiscal sustainability should come first, followed by intergenerational fairness (27.6 percent) and guaranteeing adequate retirement income (18.4 percent).
KEF Vice Chairman Lee Dong-geun said restoring public trust must be the foundation of any reform effort. “Rather than simply raising benefits, people need to be assured that they will receive returns commensurate with what they contribute,” he said.
M. H. Lee (mhlee@koreabizwire.com)
