Seoul, South Korea – A recent government projection reveals a bleak outlook for South Koreans born in the mid-1990s, who are set to receive significantly lower national pension benefits than their predecessors. According to data obtained by Democratic Party lawmaker Kang Sun-woo, a 30-year-old earning 3 million won per month can expect to receive only 800,000 won in monthly pension benefits at age 65—less than 60% of the estimated minimum living cost for a single person in retirement.
These findings are based on the assumption that the current national pension system, with a 9% contribution rate and a 40% replacement rate, remains unchanged. While the nominal monthly pension amount at age 65 is projected to be 3.04 million won, when adjusted for inflation, the real value drops to a mere 802,000 won.
Moreover, the situation worsens as individuals age. Those born in 1995 can anticipate further reductions in their monthly pension to 675,000 won at age 75 and 569,000 won at age 85. Similarly, individuals born in 2005 and 1985 are projected to receive even lower benefits.
Experts warn that the current pension system is inadequate to provide a secure retirement for younger generations. Nam Chan-seob, a professor of social welfare at Dong-a University, emphasized the need for a replacement rate of at least 50% to ensure that pensions meet basic living expenses. He suggested several measures to improve the system, including increasing the contribution period, providing additional credits for childbirth, military service, and unemployment, and offering greater financial support for low-income individuals.
Lawmaker Kang Sun-woo expressed concerns about the erosion of public trust in the national pension system, stating that "a pension system that cannot guarantee a decent retirement is unlikely to win the confidence of young people." She called for comprehensive pension reforms to strengthen retirement income security.
The findings of this study highlight the growing challenges facing South Korea's aging society and the need for urgent policy changes to ensure the long-term sustainability of the national pension system.
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