Over half of South Korean pensioners over 65 receive less than $360 monthly

Government statistics reveal that more than half of South Koreans aged 65 and over receive monthly pensions below 500,000 won (approximately $360), underscoring the inadequacy of current benefits in addressing elderly poverty. In 2024, 9.12 million individuals in this age group received at least one form of pension, marking a 5.6% increase from the previous year, with the overall coverage rate reaching 91.2%.

“

While the steady increase in the number of recipients and the coverage rate is positive, differences between groups still exist

The average monthly pension payment rose by 6% to 737,000 won. However, this amount covers only about 55% of the estimated monthly minimum cost of living for a single-person household, which stands at 1.34 million won. The median monthly payment was even lower at 497,000 won, indicating that a significant portion of recipients struggle financially.

Stark disparities exist among recipients. Men receive an average of 957,000 won monthly, significantly higher than the 546,000 won received by women. This gender gap is attributed to historical differences in labor market participation and income, affecting pension enrollment periods and contributions. Homeowners also fare better, receiving an average of 914,000 won, compared to 581,000 won for those without homes, likely reflecting higher incomes and longer contribution histories.

“

The gender gap was also substantial. Men received an average of 957,000 won a month, compared with 546,000 won for women, a difference of 411,000 won.

For individuals aged 60 to 64, who are nearing pension eligibility, the coverage rate is considerably lower at 44.4%, with more than half receiving no pension at all. These figures highlight the ongoing challenges in ensuring financial security for the elderly population, even as the government considers reforms to the Basic Pension system aimed at providing greater benefits to lower-income recipients.

“

Homeowners received an average of 914,000 won a month, 1.6 times the 581,000 won received by those without homes.