The number of recipients of the national pension scheme has surpassed 7 million.
The milestone came 36 years after the National Pension Service (NPS) introduced the scheme.
Pension recipients are on a sharp rise in proportion to the rest of society due to the nation’s low-birth rate.
NPS said on Nov. 25 that the number of pension recipients had topped 7 million.
An event to celebrate the milestone took place on Nov. 25. The 7 millionth pension recipient, identified only by their surname Park, was presented with a pension payout certificate and gifts.
Park said, “I’m glad to receive more payout by paying return money and additional pension insurance premiums, it is meaningful for me to receive more payout thanks to the last daughter I had belatedly, and it is a very precious for me to receive some 900,000 won in monthly payment.”
Figures released by NPS showed that monthly pension payout amounts stood at 3.6 trillion won.
The number of people who receive 1 million won or more or 2 million won or more per month totaled 833,000 and 44,000, respectively.
Given the trend, the yearly payout expenditure is predicted to top 40 trillion won for the first time since the introduction of the pension scheme.
The payout expenditure is on a sharp rise due to Korea’s aging population and the maturity of the scheme.
A look into recent payment trends showed that the payout expenditure, which stood at 2,914 billion won in 2004, jumped to 39.04 trillion won in 2023, a 13-fold increase.
The figure surpassed swelled to 10 trillion won in 2012 after the scheme was introduced, and to 20 trillion won in 2018, six years later and to 30 trillion won in 2022, four years later.
The payout expenditure, which is expected to top 40 trillion won this year, see the figure surge by 10 trillion won two years after it topped 30 trillion won in 2022.
National Pension Fund Sees Investment Return Rate Stand at 9.19 Percent
The National Pension Service, the nation’s biggest institutional investor of the stock market, saw its fund investment return rate top 9 percent in the first nine months of this year.
This is owed to overseas shares, which had topped 20 percent in investment return rate.
On the other hand, the investment return rate of domestic shares stood at 0.5 percent or lower. National pension fund saw reserve amounts come to 1,146 trillion won.
Figures, released by the National Pension Service Investment Management (NPSIM), showed that the t return rate of the national pension fund investments, including domestic and foreign stock, bond and alternative investments stood at 9.18 percent as of the end of September.
The invest return rate of the fund averaged 5.92 percent since the inauguration of the pension scheme.
By asset, domestic and foreign shares yielded 0.46 percent and 21.35 percent as of the end of September, respectively.
Foreign shares saw the rate improve from 19.22 percent in August while domestic shares saw the rate plunge from 3.78 percent in August.
NPSIM said, “Foreign shared surged on U.S. interest rate decrease and the rally of large-sized tech shares, and the rate also improved by the won’s currency exchange rate surge against the dollar, and domestic shares dropped due to fears over large-sized tech shares.”
Domestic bonds and foreign bonds saw the investment return rate stand at 4.09 percent and 6.97 percent.
NPSIM said, “The investment rate of the fund improved on rising bond interest rate, caused by the U.S. benchmark rate amid moves to reverse interest increase, caused by declining domestic and foreign economic indexes.”
The investment return rate of alternative investments and short-term funds amounted to 5.05 percent and 2.99 percent, respectively.
NPS Participates in Replay Campaign to Improve Awareness of Population Issues
The National Pension Service (NPS) participated in a relay campaign to improve awareness of population issues on Nov. 27.
The Ministry of Health and Welfare (MOHW) and Korea Human Resource Development Institute for Health & Welfare have conducted the relay campaign to raise social concern and awareness toward declining population and aging issues.
Starting with Lee Ki-il, the first vice minister of MOHW, government, local government and public organizations have participated.
To overcome a population crisis and change low-birth perception, NPS formed its committee designed to reverse low-birth, held a ceremony to declare labor-management joint walk, explore tasks suitable to its businesses and hold a contest to select slogans.
NPS Kim Tae-hyun said, “Issues related to low-birth have caused tremendous changes over the whole of the state and society beyond the simple declining population, and NPS will aggressively spearhead into improving population issues to raise the sustainability of the national pension fund as an institution responsible for guaranteeing people’s late-life income.”
NPS President Kim picked as next participant of the relay campaign Bae Hyeon-ju, president of Korea Health Personnel Licensing Examination Institute.
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