A 1995-born individual earning 3 million won a month is expected to receive a national pension amounting to 800,000 won in present value in 2060.
According to data submitted by the Ministry of Health and Welfare to the Health and Welfare Committee of the National Assembly on the 26th, a 1995-born individual earning a monthly salary of 3 million won can receive 3.04 million won in pension payments in 2060 when they reach the pension eligibility age. This assumes that the current national pension system's insurance premium rate of 9% and income replacement rate of 40% remain unchanged, and that premiums are consistently paid over 26 years.
When converted to present value, the monthly pension of 3.04 million won drastically drops. Adjusting for wage growth (3.77%), the amount received in present value is 802,000 won. This amount also falls short of the minimum living expenses for a single person (1.361 million won) released by the National Pension Research Institute in December of last year.
Calculations indicate that by 2070, when they are 75 years old, the pension will amount to 3.706 million won, and by 2080, when they are 85 years old, it will increase to 4.517 million won. However, when converted to present value, these amounts will decrease to 675,000 won and 569,000 won, respectively.
The situation for individuals born in 2005, at the age of 20, is projected to be similar. A 2005-born individual earning 3 million won a month who joins the national pension for 27 years until the age of 65 in 2070 is expected to receive a monthly pension of 4.452 million won, which is 812,000 won in present value. In terms of present value, they are expected to receive 683,000 won at age 75 and 575,000 won at age 85.
As a result, there are calls to adjust the national pension premium rate and income replacement rate upward. Representative Kang Sun-woo noted, "A national pension that cannot guarantee living expenses in old age cannot resolve the distrust of the younger generation," and emphasized the need to reform the pension system to strengthen income security for retirees.