3921 Voluntary Subscribers in Their Teens to National Pension... 4.5 Times Increase Since 2017

[Asia Economy Reporter Park So-yeon] The number of voluntary subscribers to the National Pension Service, who are not obligated to join but have voluntarily enrolled, has significantly increased among teenagers and people in their twenties. Voluntary subscribers are considered a key indicator of trust in the National Pension Service since they bear the full cost of the insurance premiums themselves.

According to data disclosed on the 11th by Choi Hye-young, a member of the Health and Welfare Committee of the National Assembly from the Democratic Party, obtained from the National Pension Service, the number of voluntary subscribers as of June this year was 384,144, a 17% increase compared to 327,723 in 2017.

By age group, the number of voluntary subscribers aged 18-19 increased more than 4.5 times, from 865 in 2017 to 3,921 in 2021. The number of voluntary subscribers in their twenties rose approximately 2.2 times, from 7,176 in 2017 to 15,837 in 2021.

Among these, the increase rate for 18-year-olds, when National Pension enrollment begins, was the highest, rising nearly 5.4 times from 276 in 2017 to 1,482 this year. This was followed by 19-year-olds (4.1 times) and 20-year-olds (3.6 times).

Choi analyzed that the reason for the increase in young people joining the National Pension is likely because the longer the subscription period, the higher the payout rate.

Currently, the National Pension operates on a schedule that pays a 40% income replacement rate based on a 40-year subscription period, with the income replacement rate increasing by 1 percentage point (p) for each additional year of subscription.

Additionally, if enrolled in the National Pension, benefits related to disability and death occurring during the subscription period are provided.

Choi said, "The significant increase in voluntary subscribers in their teens and twenties over the past five years reconfirms trust in the National Pension. Now, it is time for the government and the National Pension Service to respond to the trust young people place in the pension," adding, "Pension reform, including measures to support insurance premiums, which has been continuously delayed, must be implemented as soon as possible to reduce the insurance premium burden on the younger generation."