Half of Korean pensioners over 65 receive less than $360 per month

A recent government report reveals that more than half of South Korea's pension recipients aged 65 and above receive less than $360 per month. This finding highlights significant disparities in pension payments, which are influenced by factors such as gender and homeownership status. The Ministry of Data and Statistics reported that 9.12 million Koreans aged 65 and over received at least one of the country's 11 types of pension in 2024, a 5.6% increase from the previous year.

However, the average monthly pension payment of 737,000 won (around $555) falls short of the minimum cost of living of 1.34 million won for a one-person household in 2024, equating to only 55% of the required amount. The median monthly pension payment was 497,000 won, which is 240,000 won less than the average. This suggests that half of all pension recipients earn less than 500,000 won a month.

Notably, the gender gap in pension payments is substantial, with men receiving an average of 957,000 won a month compared to women's 546,000 won. This difference can be attributed to decades of disparities in labor-market participation and income, which have affected pension enrollment periods and contributions. Men have higher National Pension coverage due to their historically higher labor market participation, while women tend to have a higher rate of Basic Pension coverage.

Homeownership also plays a significant role in pension disparities. Homeowners receive an average of 914,000 won a month, which is 1.6 times the amount received by non-homeowners. The pension coverage rate for people aged 65 and over has risen to 91.2%, driven by a growing elderly population and the extended operation of the pension system.

However, pension enrollment among young people has declined for the first time, with the enrollment rate among those aged 18 to 29 falling by 1.5 percentage points to 62.0%. This decline is linked to worsening employment prospects, which have reduced opportunities for young people to enter jobs covered by pension schemes.