April 27, 2024
Economy
State pension’s income replacement ratio at 24%
[THE INVESTOR] Korean pensioners find it difficult to live only on monthly payments from the state pension scheme as the amount comes to less than a quarter of their pre-retirement income, a government report said on May 22.
The state pension’s so-called income replacement ratio for Koreans aged 65 or older with an average subscription period of 23.8 years amounts to 23.9 percent, according to the report by the Board of Audit and Inspection.
The figure means pensioners receive a monthly pension payment of less than a quarter of their average monthly salaries during their overall working years.
The number hovers well below the optimum level of 70 percent recommended by the OECD.
Alex Lee and newswires (alexlee@heraldcorp.com)
The state pension’s so-called income replacement ratio for Koreans aged 65 or older with an average subscription period of 23.8 years amounts to 23.9 percent, according to the report by the Board of Audit and Inspection.
The figure means pensioners receive a monthly pension payment of less than a quarter of their average monthly salaries during their overall working years.
The number hovers well below the optimum level of 70 percent recommended by the OECD.
Alex Lee and newswires (alexlee@heraldcorp.com)
