Publication

The Sustainability of the Basic Pension's 70 Percent Rule

The Basic Pension is required by law to cover 70 percent of Koreans aged 65 and over, a ratio fixed regardless of how seniors' incomes evolve. This brief examines the rule's fiscal trajectory, from roughly 6.9 trillion won in 2014 to a projected 44.4 trillion won by 2035, the concentration of old-age poverty among the late-elderly, women, and earlier cohorts, and public attitudes measured in the Institute's own survey (RIO 2026-01): a plurality favors reducing the fiscal burden for future generations, yet majorities in every age group oppose narrowing eligibility, while targeted increases for the poorest seniors draw the broadest support. The brief recommends strengthening support for the poorest seniors first, deciding the eligibility benchmark openly in the National Assembly, and publishing regular long-term fiscal projections.