Monthly pension for seniors is far below the subsistence level
SEOUL, Aug. 22 (Yonhap) — Retirees received an average pension of 650,000 won ($486.7) a month in 2022, far below the minimum cost of living, data showed Thursday.
A total of 8.18 million people aged 65 and over, or 90.4 percent of the total population in this age group, received pension payments from more than one type of pension program, including the basic state pension, in 2022, according to data compiled by Statistics Korea.
The average monthly amount was 650,000 won, an increase of 8.3 percent from the previous year, and was above the national basic pension ceiling of 623,368 won.
However, the National Pension Research Institute has stated that a pensioner needs at least 1.24 million won per month to live.
Of all recipients, 40.4 percent received a pension between 250,000 and 500,000 won, 27.5 percent received 500,000 to 1 million won, and 19.9 percent received less than 250,000 won.
People attend a job fair for seniors in Seoul, in this file photo taken on Dec. 13, 2023. (Yonhap)
The data also showed that 80.2 percent of 18- to 59-year-olds belonged to at least one pension program and their average monthly premium was 318,000 won.
94.5 percent of the employed persons in this age group had joined a pension insurance scheme, but the unemployment rate was 50.8 percent.
South Korea has expanded its pension programs to ensure the financial stability of its elderly population in the face of rapid population aging.
In 2020, the poverty rate among South Korea’s elderly citizens was 40.4 percent, the highest among member states of the Organisation for Economic Co-operation and Development (OECD), according to a government report.
[email protected]
(END)
