The government is promoting a policy called 'first-time youth national pension' which supports 3 months of insurance premiums for youth turning 18 years old when they first enroll in the national pension.
According to the Ministry of Health and Welfare and the Presidential Committee on Policy Planning on the 22nd, the government plans to support 3 months of insurance premiums for applicants when youth aged 18 to 26 first enroll in the national pension starting in 2027.
The policy will apply to those who turn 18 in 2027 (an estimated 451,000 youths).
If a youth has already enrolled before turning 18 or has not applied for support by age 26, a provision will also be included to automatically recognize a 3-month enrollment period. The national pension structure yields a higher pension amount for longer enrollment periods, making it advantageous to enroll as soon as possible.
The backdrop for the government's support for youth pensions is the issue of pension blind spots. According to a report from the National Pension Research Institute, as of the end of 2023, the enrollment rate for 18 to 24-year-olds in the national pension is a mere 24.3%. Even when expanded to the entire 20s age group, it is around 35%, which is dismal compared to major developed countries (80%). Analysts suggest this is due to structural challenges that have delayed youth entry into the labor market, such as pursuing higher education, military service, and employment difficulties.
Experts expect that this policy will encourage early enrollment among youth and positively impact the payment rate for those in their 20s in the long term. However, there are also calls for institutional improvements such as recognizing the entire military service period as enrollment.