6 in 10 low earners not registered for pension: report

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Despite the government's efforts to reduce the blind spot for the national pension, only four out of 10 people in the low-income bracket are enrolled in the national pension system, a study showed Sunday.

According to the National Pension Research Institute, among the people aged 20 to 59 in the last tier of the income group, those who earn less than two-thirds of the median income of 2021, only 40.96 percent enrolled in the national pension system.

The enrollment rate increased a mere 2.15 percentage points from 2009, when 38.81 percent were paying for the pension system.

On the other hand, the enrollment rate was 80.46 percent for the high-income group, those who earn 1.5 times or more than the median income, and 78.09 percent for the middle-income group, who earn the amount in between. Both groups saw double the enrollment rate compared to the lowest-income group.

Compared to 2009, the so-called middle and upper groups experienced increases of 13.62 percentage points and 6.84 percentage points, respectively, much higher than the lower group.

Despite government support measures — such as granting additional national pension credits for women who give birth, recognizing military service and covering premiums for low-income individuals — the policy's impact has fallen short of expectations, according to the report.

While the poverty rate among the elderly has decreased due to the increase in the number of working seniors and the number of national pension recipients, the poverty rate among those aged over 85 has increased.

The poverty ratio of the elderly increased from 48.23 percent to 52.44 percent.

"Unlike the elderly in other age groups, the increase in the poverty rate of the very elderly, or those aged over 85, indicates an increase in the poverty rate gap within the elderly group," the report said. "The decline in labor income among the very elderly was also influenced by the decline in the number of people living together in a household," it added.

By Choi Jeong-yoon(jychoi@heraldcorp.com)