South Koreans Lose Faith in State Pensions, Turn to Crypto and Stocks – Survey
Most young South Koreans are losing faith in the national pension system, a new survey has found – with many stating they see crypto and stocks as a better alternative.
The study found that more than three-quarters of people aged 20-39 “don’t trust” state-issued pensions.
Over half of respondents who said they were making their own pension plans claimed they were building their retirement funds with stocks and crypto.
According to Chungnam Ilbo, the survey was conducted by the Korea Women’s Policy Institute.
The institute spoke to 1,152 people in July 2023. All respondents were “in their 20s and 30s.”
Almost 90% said their pension concerns stemmed from “worries about insurance premiums rising due to population decline.”
South Korea has the lowest birth rate in the world. The country posted a new record low of 0.72 children per woman in 2023.
South Korea's overall birth rate hit a record low in 2023, and with that figure projected to fall even further in 2024, some Korean businesses have started offering remarkably generous incentives to convince their workers to become parents. https://t.co/Os2Xj9xyq1
— CBS Mornings (@CBSMornings) March 29, 2024
This has led many to question how the National Pension Service (NPS) will be able to pay pensions in the future.
Older South Koreans already outnumber their younger counterparts. The 40-60 year-old age bracket dwarfs the 20-39 bracket.
Over 86% of respondents also said they thought the amount of money they would likely receive from the NPS in the future would be “too small.”.
Around 83% agree they would “not be able to receive any state national pension in retirement because the NPS fund will be depleted.”
Most respondents (57%) said they had not made any retirement plans, outside of
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