South Korea's financial authorities said Friday they are preparing to revise legislation on a personal pension system as part of efforts to address the post-retirement poverty problem.
"The government will do its best to submit a revision bill to the National Assembly by May," Yoo Kwang-yeol, standing commissioner of the Securities and Futures Commission, said at a public hearing on the issue.
The logo of the Financial Services Commission in a photo provided by Yonhap News TV. (Yonhap)
The SFC, an organ of the Financial Services Commission, is responsible for the oversight of the securities and futures markets.
In 2026, he pointed out, South Korea will become a "super-aged society," where 20 percent or more of the population is 65 or older. Concern has grown that the current state and private pension plans are not sufficient to cover the life of a growing number of retirees and elderly people.
"While South Korea has the world's fastest speed in becoming a super-aged society from an aging one, the poverty rate of elderly people reaches 48.5 percent, quadruple the OECD average of 11.6 percent," Yoo said.
Furthermore, around 70 percent of the people's assets are based on real estate, deepening liquidity woes after retirement, he added.
The government plans to allow local financial firms to expand personal pension products including the trust-type pension system.
Personal pension accounts will be introduced as well. (Yonhap)