S. Korea’s Average Monthly Pension Payout Surpasses 700,000 Won
The number of pension recipients aged 65 and older in South Korea exceeded 9.12 million last year, hitting the highest level since record-keeping began. The average monthly payout also surpassed 700,000 won for the first time, reflecting both an aging population and a broader reliance on retirement
In South Korea, the average monthly pension payout exceeded 700,000 won for the first time in 2024, according to the latest Pension Statistics released by Statistics Korea on August 25. This milestone reflects the impact of an aging population and increased reliance on retirement safety nets. The number of pension recipients aged 65 and older surpassed 9.12 million, marking the highest level on record.
This represents a 5.6% increase (486,000 people) from the previous year's 8.636 million pensioners. The senior population, which reached 10 million in 2023, accounted for 91.2% of pension recipients aged 65 and over, a 0.3 percentage-point increase compared to the previous year. The average monthly payout rose to 737,000 won (approximately $530), a 6.0% increase from 695,000 won the previous year.
This 8-year increase of 314,000 won is attributed to inflation-adjusted public pension adjustments and longer contribution periods. While the median monthly payout was 497,000 won, indicating that half of the recipients earned less than 500,000 won per month, gender disparities persisted. Male pensioners collected an average of 957,000 won per month, nearly 1.8 times more than women who averaged 546,000 won.
The gap was attributed to historical labor market inequalities, income levels, and contribution periods. Wealth and age also played a significant role in determining payout amounts. Homeowners received an average of 914,000 won per month, while non-homeowners averaged 581,000 won, with those owning assets above 1.2 billion won earning 1.772 million won monthly.
Payouts decreased with age, from 858,000 won for seniors aged 65-69 to 577,000 won for those aged 80 and above. Occupational Pensions were the highest-paying scheme at 2.783 million won monthly, followed by Farmland and Reverse Mortgage (Housing) Pensions at 1.437 million won and 1.306 million won, respectively. The lowest-paying scheme was the Personal Pension at 558,000 won monthly, with the National Pension at 491,000 won and the Basic Pension at 300,000 won.
The working-age pension subscriber base (ages 18-59) shrank by 1.1% to 23.484 million due to demographic decline, but the participation rate among working-age individuals increased slightly to 81.1%, with average monthly premium contributions rising by 5.4% year-on-year to 363,000 won.
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