Business · Economy · 3 hrs ago
South Korea’s pension gap leaves older workers in insecure jobs
A study in South Korea found that older workers can face a three-year wait for pension payments after the retirement age.
The gap is widening because the National Pension eligibility age is rising, while the age limit for compulsory contributions remains 59.
Among people born from 1961 to 1964, many return to work in temporary or daily jobs rather than stable positions.
Households whose income fell to less than half its earlier level often cut spending, yet about seven in ten ran a household deficit.
Other options offered little help to many low-income households: most older households’ assets are tied up in property, and few people aged 60 to 64 received occupational pensions in 2023.
The researchers say targeted support is urgently needed for people with limited savings and work opportunities.
They propose gradually extending the retirement age, allowing more older workers to contribute to the pension system, and expanding bridge jobs and other support.
South Korea’s pension eligibility age is rising while the age limit for compulsory National Pension coverage remains 59, leaving some older workers without pension or coverage for up to three years.
Many people in this gap seek work, but those who re-enter employment often end up in temporary or daily jobs rather than stable positions.
A government research report found that households whose income fell to less than half their pre-retirement median income often ran deficits.
The researchers called for measures including a gradual increase in the retirement age, wider pension coverage for older workers and more public bridge jobs.
- Who
- Older South Korean workers facing a gap between retirement and pension eligibility, and researchers at the Korea Institute for Health and Social Affairs.
- What
- Older workers are taking insecure jobs to cover an income gap before pension payments begin.
- When
- The report describes the situation in 2026; the pension eligibility age is scheduled to rise to 65 by 2033.
- Where
- South Korea.
- Why
- The pension eligibility age is rising, but compulsory National Pension coverage ends at age 59, leaving some people without pension income or coverage.
This story does not have two clearly opposing sides.
A pension reform set in motion a gradual increase in the National Pension eligibility age.
The eligibility age began rising from 61, increasing by one year every five years toward 65 in 2033.
People born from 1961 to 1964, with a pension eligibility age of 63, face a three-year gap from ages 60 to 62.
- Pension eligibility age
- Scheduled to rise to 65 by 2033
- Compulsory National Pension coverage age limit
- 59
- Income-gap duration
- Up to 3 years for people born from 1961 to 1964
- Temporary and daily jobs
- 61.3% of people who found work again after age 60
- Household deficits
- 70.2% to 72.5% of households whose income fell to less than half their pre-retirement median income