President Yoon Suk Yeol expressed his strong commitment to reforming the national pension system to ensure the fund’s sustainability, so citizens can receive their pensions without concerns about depletion.
He also reaffirmed his pledge to increase the number of doctors and overhaul the nation’s medical system to ensure access to medical services in non-capital regions, despite a protracted standoff with doctors over the government’s plan to raise medical school admissions quotas.
In his rare public briefing and press conference, Thursday, the president said the national pension system requires fundamental structural changes. He explained that it currently fails to provide sufficient income replacement for retirees, while younger Koreans worry they may not receive any benefits, given the government’s forecast that the fund could be depleted by 2055.
“The government is committed to restoring trust in the national pension system through sustainable, long-term reforms,” Yoon stated during the press conference at the presidential office in central 스포츠 Seoul. “In addition to adjusting variables like premiums and income replacement rates, we need to enhance the fund’s investment returns and introduce automatic stabilizing mechanisms to secure the pension’s long-term viability.”
Earlier this year, the rival parties discussed increasing the pension premium from 9 percent to 13 percent of one’s income. But they disagreed on the income replacement rate, which is the pension as a percentage of a subscriber’s average lifetime income. The current rate is 40 percent, with proposals to raise it to between 44 and 45 percent.
Yoon did not elaborate on the specific levels for the premium and income replacement rate, but he indicated that the government will soon present a detailed proposal.
The president further emphasized the need for reforms tailored to younger workers, who contribute the most and receive benefits the latest. He advocated for differentiated premium increases between younger and middle-aged generations.
“We need to legally guarantee the state’s obligation to provide pensions, to reassure younger generations that they will also receive benefits.”