The Korea Herald


Savings-type pensions fall short of minimum necessary cash for retirement

By 윤정현

Published : Oct. 17, 2016 - 17:05

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[THE INVESTOR] South Koreans with savings-type pension schemes bagged a monthly average of only 280,000 won (US$245) in pension last year, far less than the minimum cash needed for a post-work life, government data showed on Oct. 17.

They paid a total of 16 trillion won for savings-type pension programs here in 2015 alone, with monthly payments of total 2.42 million won on average, according to the Financial Supervisory Service. They received a total of 1.36 trillion won in pension last year.

They got only 280,000 won in pension per month after retirement in addition to an average of 330,000 won from the national pension fund.

The combined amount accounts for only 62 percent of the 990,000 won per month evaluated to be necessary for an individual’s post-retirement life, a figure based on a survey by the National Pension Research Institute.

“(The government) plans to step up efforts to publicize various retirement savings products and raise public awareness on the need for preparations for retirement ages,” the FSS said.

Also considered is expanding tax benefits for those with related accounts, it added.