DistantNews
Support us
🇸🇬 Singapore /Economy & Trade

Too Young for a Pension, Too Old for Youth Aid: Seoul Plans Midlife Savings Scheme

From The Straits Times · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources New plan
  • Seoul plans to help middle-aged residents bridge the gap between their final pay cheque and the start of national pension payments through matched long-term savings accounts.
  • Participants would contribute 80,000 won a month for 10 years, while the city would add 20,000 won, with projected savings of up to 16.4 million won including investment returns.
  • Eligibility, enrolment, management and payout details remain undecided, and Seoul is consulting the Health and Welfare Ministry ahead of a possible 2027 launch.

Seoul is considering a savings programme for residents caught between youth assistance and old-age pension support, with the city paying into long-term accounts for people in middle age.

Under the proposal, participants would contribute 80,000 won a month for 10 years, while Seoul would add 20,000 won. The city estimates that an account could reach 16.4 million won, including investment returns. The accumulated funds would then be paid in monthly instalments between retirement and the start of national pension benefits.

We are aiming to launch the programme in 2027, but consultation with the health ministry is one of the steps we need to complete first.

— Seoul city officialThe official described the proposed launch timeline and the remaining consultation process.

The plan emerged from Mayor Oh Se-hoon’s campaign pledge before the June 3 local elections. Seoul is consulting the Ministry of Health and Welfare and aims to launch the programme in 2027. The city has not yet set eligibility rules, including age, income and asset limits.

This would be Seoul’s first pension-style savings programme targeting the so-called sandwich generation.

— Seoul city officialThe official said the proposal would specifically target middle-aged residents supporting parents and children.

Other details also remain open. Seoul has yet to choose the financial institution that would manage the accounts, determine the final matching contribution and decide how many people could enrol or how payments would be distributed. Oh said people in their 40s and 50s had worked while caring for both parents and children but had largely been overlooked.

The proposal follows criticism that government support has focused on younger and older generations. Seoul already runs a matched-savings programme for young workers, with contributions matched for up to three years. Proposed changes to the city’s financial-stability ordinance would extend the maximum period for asset-building subsidies from three years to 10. Public comments on those changes are open until Sept. 16.

People in their 40s and 50s have worked hard while caring for both their parents and children, yet they have largely been overlooked. Seoul will now help shoulder their burden.

— Oh Se-hoonThe mayor framed the programme as support for middle-aged residents facing family and financial responsibilities.
About this summary

Originally published by The Straits Times in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

More Stories

From Our Blog