South Korea elderly poverty rate hits 35.9%, prompting pension reform calls

South Korea's elderly relative poverty rate reached 35.9% in 2024, more than double the national average of 15.3%. Research from the Korea Institute for Health and Social Affairs highlights that one in three seniors lives on less than half of the median income.

Experts suggest a shift in the current basic pension structure, which provides uniform benefits to the bottom 70% of seniors. To maximize fiscal efficiency, researchers propose a 'progressive' model where support is concentrated on those with the lowest incomes. Specifically, providing an additional 177,000 KRW monthly to those just below the poverty line could facilitate a rapid exit from poverty.

Proposed policy measures include linking basic livelihood benefits with public jobs for the extreme poor, and combining pensions with work incentives for the near-poverty class. For wealthier seniors, the focus should shift toward asset liquidity, such as utilizing housing pensions.

Critics and researchers also note that the current universal welfare approach to the basic pension may place an unsustainable burden on future generations due to rising national debt. They argue for transitioning toward a residual welfare model that prioritizes those in genuine economic distress.