South Korea Is The Stark Future Of Super-Aged Societies

But unless something changes, the national pension fund is projected to be depleted by 2054. Many older adults have incomplete pension contribution histories and receive only modest benefits. Among those born before 1950, poverty rates are higher due to limited access to pensions and limited wealth accumulation.

According to the latest Organization for Economic Cooperation and Development, data, South Korea has the highest old-age income poverty rate among the OECD's 38 member countries: 39.7% of people ages 66 and older live on less than half the national median household disposable income, compared with the OECD average of 14.8%.

Despite multiple efforts at policy reform, economic insecurity persists among older adults in South Korea.

Because many older adults are asset rich but cash poor – with more than 80% of their assets in real estate but only 12.4% in savings – many are pairing the Basic Pension with reverse mortgages to turn their assets into disposable income.

Because pensions fall short for so many, South Korea has a high employment rate among older adults.

In fact, the average age at which South Korean older adults leave the workforce is higher than that in any of the other OECD countries. While men typically leave their longest-held job at about age 51, they continue to work until around age 72. Many spend those years in lower-paying, less secure“second careers.

Simply raising the retirement age is insufficient. South Korea is currently debating whether to gradually raise the statutory retirement age from 60 to 65. This would allow workers to remain in their primary careers longer, in order to narrow the gap between retirement and pension benefit eligibility.

But while this might ease financial pressures or improve older workers' income security, it could also negatively affect the upward mobility of younger workers if older employees remain in senior positions for longer.

For now, South Korea has already begun making changes to both pension financing and late career employment. A 2025 pension reform will gradually raise the national pension contribution rate from 9% to 13% by 2033 and set the target replacement rate – that is, the share of preretirement income that the pension is designed to replace – at 43%.

One of the biggest challenges for South Korea's rapidly aging society is healthcare.

In 2008, South Korea introduced long term care insurance, which supports home care, nursing, rehabilitation, daycare, assistive devices and residential care for people with physical or cognitive needs. The program is financed through National Health Insurance, government funding and user copays.

Adults ages 65 and older can qualify if they are assessed as having difficulty performing daily activities or have specific age-related conditions, such as dementia or cerebrovascular disease. Eligibility is not income-based, although lower-income beneficiaries pay reduced or no copays.

Demand for services is rising rapidly. In 2024, 10.8% of people 65 and older and 31.9% of those at least 80 were certified for benefits, and these percentages are expected to increase.

But the program isn't perfect: Families still provide substantial care, the care workforce is concentrated among older women in economically insecure jobs, and rural areas have fewer services and limited infrastructure to address the growing needs. It also doesn't help that many older South Koreans worry about becoming a burden on their families.

Mental health and social connection have also become important components of South Korea's response to population aging. South Korea has the highest suicide rate in the OECD, and the suicide rate among adults 65 and older was higher than in other age groups.

Social isolation is another growing concern. According to the 2023 National Survey of Older Koreans, 6.6% of adults 65 and older reported having no one they could turn to for help when they were sick, feeling discouraged or depressed, or facing an urgent financial need. The share rose from 4.6% among those between 65 and 69 to 12.9% among those 85 and older.