The pension system in Korea looks alarmingly bad

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via pulse:

A recent study warned that South Korea could face a crunch in financing its retiree payouts as payments will outpace contributions by 2027.

The paper released by the National Pension Research Institute on Thursday projects that pension payouts will surge from 45.1 trillion won ($32.7 billion in 2024 to 51 trillion won in 2025, hitting 67.6 trillion won in 2027 and 73.5 trillion won in 2028. Payments are expected to increase by about 7 trillion won per year over the next four years on average but increases in contributions from potential pensioners will remain slower.

Contributions, estimated at 60.7 trillion won for 2024, are projected to rise to only 65.3 trillion won by 2028, a total increase of less than 5 trillion won with the four-year period.

The poverty rate among elderly people in South Korea is the highest among OECD countries, with nearly half of those aged 65 and over living in relative poverty. The National Pension Service (NPS) was introduced in 1988, but only about one-fifth of the elderly population receives a pension. This has led to significant financial insecurity for many older adults.

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Regarding real estate prices in Seoul, they have indeed been rising despite the country’s declining birth rate. This trend is partly driven by expectations that the Bank of Korea (BoK) will lower interest rates soon, making borrowing cheaper and potentially boosting property investments.

Sources:
en.wikipedia.org/wiki/Pension_policy_in_South_Korea

www.nps.or.kr/jsppage/english/main.jsp

www.namhansouthkorea.com/how-much-is-the-korean-pension/


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