Government Intensifies Discussion on Basic Pension Reform
In the basic pension reform, a plan in which lower-income recipients receive more is emerging as the leading option. Quickly check the government’s discussion trend on easing elderly poverty and ensuring the sustainability of the system.
The government has begun discussions to revise the basic pension system, which currently pays the same amount to seniors in the bottom 70% of the income distribution. On the 9th, the Ministry of Health and Welfare held an expert forum at the conference room in Seoul Station, Yongsangu, Seoul, to discuss the current state of elderly poverty and directions for reform.
Inside the government, a 'more support for the lower end, less for the upper end' approach, in which benefits increase as income decreases, is being seriously considered. This comes after President Lee Jaemyung publicly proposed it earlier this year, which sparked broader public discussion, against the backdrop of criticism that the current system has limitations in terms of sustainability and poverty reduction.
The basic pension currently provides up to 349,700 won per month for seniors aged 65 or older in the bottom 70% of income earners (based on a singleperson household). Experts suggested reexamining the eligibility criteria and moving toward stronger support for lowincome groups. Based on this discussion, the Ministry of Health and Welfare said it will prepare a reform plan to strengthen income security in old age.