S. Korean President Offers To Increase Pension Premium At Different Pace For Age Groups

SEOUL, Aug 29 (Bernama-Xinhua) -- South Korean President Yoon Suk-yeol on Thursday offered to increase pension premium at a difference pace for age groups in a bid to make the pension programme acceptable to the younger generation, reported Xinhua.

"It is necessary to differentiate the rate of increase in pension premiums between the younger and the middle-aged generations," Yoon told a televised policy briefing.

Yoon vowed to push for pension reforms that are acceptable to the younger generation who pays the most premium for the longest period and receives the pension at the very last.

"It should be stipulated in laws that the government guarantees the (pension) payment. Only then the young people can be assured that they will receive it," Yoon noted.

Worries remained severe over a fast depletion of the national pension fund amid the rapidly aging population and the chronically low birth rate.

The state-run National Pension Service forecast that the national pension fund would record its first decline in 2041 before being depleted in 2055.

Yoon also pledged to reform the basic, retirement, and private pension programmes based on three principles, including sustainability, inter-generational fairness, and after-retirement income security, adding that detailed reform plans will be announced at the earliest possible date.  

-- BERNAMA-XINHUA