Despite Higher Receipt Rates, Elderly Women Receive Only 243,000 Won per Month on Average from National Pension

National Pension Research Institute's 10-Year Tracking Report
Elderly Women Receive Only One-Sixth of Elderly Men's Benefits

Although the public pension receipt rate and income growth rate among women aged 66 and older in South Korea have surpassed those of men over the past decade, the actual income level remains woefully insufficient to support their livelihood after retirement.

According to the report "Analysis of Changes in Income Composition and Consumption Patterns of Elderly Women by Public Pension Receipt" by National Pension Research Institute researchers Kim Mansoo, Ahn Junhong, and Lee Yaein, the total income of women aged 66 and older increased by 94.9% from 2013 to 2023, outpacing the increase for elderly men, which stood at 72.2%.

However, despite this high growth rate, the actual pension benefits and total income of elderly women remain extremely low. As of 2023, the average monthly National Pension benefit for elderly women was 243,000 won, which is only one-sixth of the 1,545,000 won received by elderly men on average.

In reality, despite the maturation of public pension systems, the gender gap in the National Pension—which is the core pillar of retirement income security—remains severe. As of December 2024, there were 976,000 male recipients of the full old-age pension (with 20 years or more of contributions), while only 185,000 women received the same, meaning the number of men was about five times higher than women. As of 2024, the average monthly payout for all old-age National Pension recipients was 657,000 won, which is less than half the median income for single-person households, making it difficult to maintain a stable post-retirement life based on pension benefits alone.

The form of public pension receipt also led to clear differences in economic vulnerability. Elderly women who receive only the National Pension demonstrated a positive income effect, with increases in pension benefits leading to increases in both overall and essential consumption. In contrast, the group receiving only the Basic Pension showed the smallest gender gap, but had the lowest total income among all groups, exhibiting severe vulnerability. Even when Basic Pension benefits increased, this group did not see a statistically significant rise in total consumption expenditures or spending on essentials such as food and housing.

The vulnerable economic structure of elderly women was also evident in their income composition. In 2023, the Basic Pension accounted for 22.2% of total income among elderly women, the highest proportion among all income sources, increasing by about 7 percentage points compared to a decade earlier. It overtook earnings from work, business income, and private transfers from children, becoming the most important source of income. In contrast, the Basic Pension accounted for only 3.6% of elderly men's income.

When analyzed by household type, elderly individuals living alone were found to be the most vulnerable group regardless of gender, with little difference in income between men and women. Single-person elderly women’s households showed very high dependence on the Basic Pension and private transfers. Analysis by asset group also revealed that the lower the asset group, the greater the reliance on the Basic Pension. The consumption patterns of elderly women were found to be more influenced by the total income and asset size of their spouse or household than by their own pension benefits.

Based on these analyses, the research team proposed a range of policy measures to strengthen retirement income security for vulnerable elderly women.

In the long term, they recommended providing additional Basic Pension payments to the most vulnerable elderly, specifically those in the lowest 25% income group. They also emphasized that when determining eligibility for the National Basic Livelihood Security Program, Basic Pension benefits should be excluded from the income calculation, allowing low-income elderly to fully benefit from welfare programs. Considering the long life expectancy of elderly women and the risk of being left alone, the researchers proposed establishing a new system to grant a one-time funeral expense payment of around 800,000 to 1,000,000 won to the bereaved family when a Basic Pension recipient passes away.

For the short term, the team suggested that the spousal reduction rule—where each spouse’s Basic Pension is reduced by 20% when both receive it at the same time—should not be applied to the most vulnerable groups, thereby paying the full amount with no reduction. However, before implementing these policies, the researchers stressed the need to define the overall role and goals of the Basic Pension, and to review the financial sustainability of these measures given the significant fiscal resources required.

This content was produced with the assistance of AI translation services.