Greater than half of Koreans mistrust the nationwide pension system, with most respondents viewing present contribution ranges as burdensome and opposing deliberate premium will increase, based on a survey launched Wednesday by the Korea Employers Federation (KEF).
Within the survey, 55.7 p.c of respondents mentioned they don’t belief the Nationwide Pension Service, exceeding the 44.3 p.c who mentioned they do by 11.4 share factors.
Mistrust was notably pronounced amongst youthful generations, with 69.2 p.c of respondents of their 20s and 74.7 p.c of their 30s saying they don’t belief the nationwide pension system. Solely these of their 50s and older confirmed increased ranges of belief than mistrust.
When requested concerning the monetary burden of pension contributions, 69.7 p.c mentioned the funds had been burdensome relative to their earnings, together with 19.7 p.c who discovered them “very burdensome” and 50 p.c who mentioned “considerably burdensome.” One other 25.6 p.c described the extent as “average,” whereas simply 4.7 p.c mentioned they felt no burden.
Relating to the pension reform plan that might elevate the contribution fee by 0.5 share factors annually till it reaches 13 p.c, 73.4 p.c of respondents seen it negatively, whereas solely 19.7 p.c responded positively.
When requested concerning the potential fiscal influence of accelerating the earnings alternative fee to 43 p.c, 82.5 p.c mentioned they had been “involved,” in contrast with 17.5 p.c who mentioned they weren’t.
Underneath the revised Nationwide Pension Act, handed by the Nationwide Meeting in March by bipartisan settlement, the contribution fee will regularly enhance from the present 9 p.c to 13 p.c by 2033, beginning in 2026.
The nominal earnings alternative fee, which measures the ratio of pension advantages to pre-retirement earnings, can even rise from 41.5 p.c this yr to 43 p.c in 2026.
The KEF mentioned the survey outcomes counsel that the reform plan, which raises profit ranges with out introducing fiscal safeguards, has accomplished little to ease public nervousness concerning the fund’s potential depletion.
As for the highest precedence in reforming the nationwide pension system, 30.7 p.c of respondents selected enhancing the fund’s long-term sustainability, adopted by making certain intergenerational equity at 27.6 p.c and securing ample post-retirement earnings at 18.4 p.c.
“Sustaining public belief is important to sustaining momentum for pension reform,” KEF Govt Vice Chairman Lee Dong-geun mentioned. “Slightly than merely elevating the earnings alternative fee, it’s extra vital to guarantee those that they’ll obtain advantages in proportion to what they’ve paid in.”
The KEF commissioned Mono Analysis to conduct the survey, which collected responses from 1,007 adults aged 20 and older nationwide. The outcomes carry a 95 p.c confidence stage with a margin of error of plus or minus 3.08 share factors.
