Korea (South) | Melbourne Mercer Global Pension Index : Melbourne Mercer Global Pension Index

Korea (South)

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.

RRF19921_MMGPI Report_0616_Chart_WEB_1000x950_17_KOREA

Progressive Results:






2016 46.0 46.5 43.9 48.1
The Korean index value increased from 43.8 in 2015 to 46.0 in 2016 due to a number of small increases in all three sub-indexes.
2015 43.8 43.9 41.6 46.8

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

2014  43.6  42.6  42.5  46.7

The Korean index value decreased slightly from 43.8 in 2013 to 43.6 in 2014 primarily due to a reduction of the net replacement rate and the net household saving rate.






The Korean index value fell from 44.7 in 2012 to 43.8 in 2013 primarily due a correction in one answer and a significant increase in life expectancy, as measured by the United Nations.






Media 2014:

한국 퇴직 후 연금, 25개국 중 24위

[단신] 한국 연금체계평가 25개국 중 24위로 D등급

한국 연금체계평가 25개국 중 24위로 D등급


Save pagePDF pageEmail pagePrint page
Link to Victorian Government (Victoria Online) the Mercer Australian website Australian Centre for Financial Studies