[The Public = Daniel Park] As the number of beneficiaries of the national pension recently surpassed 6 million, concerns about pension depletion are growing. In addition, as the rate of return of the National Pension Fund has also decreased slightly, there is a growing concern among young people that they may not be able to get their money back. Accordingly, experts agree that pension reform should be carried out as soon as possible within the term of the government.
According to the National Pension Service on the 27th, the number of national pension beneficiaries exceeded 6 million in two years and one month after exceeding 5 million in April 2020. It took 4 years and 8 months for the number of recipients to increase from 3 million to 4 million, and it took 3 years and 6 months to increase from 4 million to 5 million. As the number of subscribers increases, the death rate is gradually getting shorter.
The National Assembly Budget Office predicted that if the national pension was left as it is, the fund would run out in 2055, and those born in 1990 would not receive a penny. In addition, the number of beneficiaries to support per 100 national pension subscribers is expected to increase fivefold from 19.4 in 2020 to 93.1 in 2050. The public service pension and military pension are already depleted of their reserves and are being paid up by taxes every year by trillions of dollars.
According to the announcement of the National Pension Service, as of the end of March, the overall rate of return of the National Pension Fund was -2.66% compared to the beginning of the year.
The National Pension Fund Management Headquarters said, "Profitability has declined due to increased volatility in domestic and foreign stock markets due to concerns about the US Federal Reserve's accelerated monetary tightening and Russia-Ukraine geopolitical issues."
In the long run, however, the return on the National Pension Fund is favorable. According to the 'Fund Assessment for Fiscal Year 2022' reported to the State Council by the Ministry of Strategy and Finance, the National Pension Fund recorded a rate of return of 10.86% (91.2 trillion won) last year. In the government's asset management evaluation, it maintained the same 'good' rating as the previous year.
Nevertheless, the national pension is in danger of being exhausted. According to the 'Long-term Fiscal Prospects of the Four Major Public Pensions' report by the National Assembly Budget Office, the National Pension Reserve is expected to reach the highest level of 1344.6 trillion won in 2038 and then be exhausted in 2055. Currently, people born in 1990 (age 32) cannot receive the National Pension from the year they turn 65.
Talks about reforming the National Pension System to improve this are constantly coming out, but it is difficult to implement unless it is immediately after the new government is inaugurated, as most of the adults are targeted. This is because most of the previous governments that tried to reform the pension in the past did not succeed in the end.
In the National Assembly, calls for reform of the national pension are growing. Seven partial amendments to the National Pension Act, the Private School Teachers' Pension Act, and the Civil Service Pension Act are pending this year alone.
In response, President Yoon Seok-yeol said in his first address to the National Assembly on the 16th that "pension reform is necessary to implement a sustainable welfare system and provide a tight social safety net." "The government and the National Assembly must cooperate bipartisan." . However, the 'Public Pension Reform Committee', which was supposed to be placed under the direct control of the President, decided to set up the National Assembly.
The Public / Daniel Park webmaster@thepublic.kr
더퍼블릭 / Daniel Park webmaster@thepublic.kr