South Korea

Korea’s retirement income system comprises a modest basic pension and a public earnings-related pension scheme with a progressive formula, based on both individual earnings and the average earnings of the insured as a whole.

The overall index value for the Korean system could be increased by:

  • improving the adoption of ERSA scheme plans
  • improving the level of support provided to the poorest pensioners
  • introducing a requirement that part of the retirement benefit from private pension arrangements must be taken as an income stream
  • increasing the level of funded contributions thereby increasing the level of assets over time
  • improving the governance requirements for the private pension system, including the need for an audit
  • improving the level of communication required to members from pension plans

The Korean index value increased slightly from 43.6 in 2014 to 43.8 in 2015 due to a number of small changes.


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