Statistics Korea data reveals that the relative poverty rate among individuals aged 65 and older dropped to 35.9% in 2024, marking a 2.3 percentage point decline from 38.2% in 2023. This shift ends a three-year upward trend in elderly poverty.
Previously, roughly four out of every 10 elderly people lived in poverty, but the figure now stands at about 3.5 out of 10. Relative poverty measures households earning less than 50% of the national median income, highlighting vulnerabilities even among urban middle-income seniors lacking adequate pensions.
Historical Reversal After Consecutive Increases
The 2024 decline reverses gains made over the prior two years. The rate first surpassed 39% in 2020 at 39.1%, dipped slightly to 37.6% in 2021, then climbed back to 38.1% in 2022 and 38.2% in 2023. This year’s drop to 35.9% signals a potential turning point after sustained rises.
Widening Gap Between Market and Relative Poverty Rates
Under market income standards—excluding government transfers—the elderly poverty rate reached 54.9% in 2024, affecting over half of seniors with no private earnings, such as those relying solely on public pensions. Among every two elderly individuals, one faces poverty on market income alone.
Public transfers like pensions significantly narrow this gap. In 2023, the difference between market income poverty (55.5%) and relative poverty (38.2%) was 17.3 percentage points. By 2024, it expanded to 19 points, underscoring the growing impact of social support programs.
Persistent Challenges Despite Improvements
South Korea’s elderly poverty rate remains more than double the OECD average, even as it hits a recent low. Factors like low elderly employment rates and heavy dependence on national pensions contribute to elevated levels compared to other member countries.
Experts emphasize that while transfers provide crucial relief, bolder reforms in public pension systems are essential. They call for enhanced coverage to prevent poverty spillover into working-age groups and urge greater opportunities for elderly workforce participation to build financial security.
