The South Korean government is promoting a new policy called first-time youth national pension by supporting three months of insurance premiums for youth turning 18 years old when they first enrol in the national pension.
According to the ministry of health and welfare the three months of premium payment support will be available to those between 18 to 26 years of age entering the scheme for the first time. The policy will apply to those who turn 18 in 2027. According to an estimate in 2027 around 451,000 youth would be turning 18 years of age.
A report from the National Pension Research Institute has revealed that as at the end of 2023, the enrollment rate for 18 to 24-year-olds in the national pension is a mere 24.3%. Even when expanded to the entire 20s age group, it is around 35%, which is dismal compared to major developed countries (80%).
Experts expect that this policy will encourage early enrollment among youth and positively impact the payment rate for those in their 20s in the long term. However, there are also calls for institutional improvements such as recognizing the entire military service period as enrollment.