▪ The basic pension program is designed to provide a monthly stipend to people 65 years and above who fall within the lowest 70% of income earners.
▪ The basic pension’s maximum possible payment, termed the standard pension benefit, is KRW 323,180 monthly.
▪ The budget required for the basic pension has experienced an average annual growth of 14.2%, escalating from KRW 6.8 trillion in 2014 to KRW 22.6 trillion in 2023, combining both national and local contributions.
▪ From 2014 to 2022, the number basic pension recipients rose from 4.353 million to 6.239 million, reflecting the growing elderly population aged 65 and above.
▪ The number of individuals receiving both the national and basic pensions is on the rise. Similarly, recent years have seen an increase in the number of people concurrently receiving livelihood benefits.
▪ From 2015 to 2023, the income eligibility thresholds for both single and married couple households in the basic pension program have witnessed an average annual growth of 10.2%. This growth rate surpasses the average yearly increase in median income for one- and two-person households, which stands at 3.6% and 3.3%, respectively, during the same timeframe.
▪ The deemed income of those receiving the basic pension has shown a marked increase, averaging 13.2% annually, from KRW 210,000 in 2015 to KRW 500,000 in 2022. Concurrently, there has been a steady decline in the number of recipients with no deemed income.
▪ The percentage of individuals receiving both the national and basic pensions, out of the total number of basic pension beneficiaries in each deemed income quintile, is on the rise across all quintiles. This increase is particularly notable in the second income quintile.
▪ The basic pension’s standard monthly benefit was raised from KRW 200,000 in 2014 to KRW 250,000 in September 2018. It further increased to KRW 300,000 in 2021, with adjustments continuing in line with consumer price inflation.
▪ The difference in the amount between the average national pension benefit and the basic pension’s standard benefit, specifically for those insured for less than 20 years—who represent the largest group of recipients of the national (old-age) pension—is steadily decreasing.
▪ From 2014 to 2022, the average benefit amount for basic pension recipients rose from KRW 178,000 to KRW 272,000, consistently representing 89% of the standard benefit.