[News Terms] 'Elderly Poverty Rate' Ranked No.1 Among OECD Countries

[Asia Economy Reporter Kim Jong-hwa] The elderly poverty rate refers to the relative poverty rate among the elderly population aged 65 and over. The relative poverty rate indicates the proportion of elderly people whose income level is 50% or less of the median income.

According to Statistics Korea's '2022 Household Finance and Welfare Survey,' the median income for single-person households last year was 1,944,812 KRW, and for two-person households, it was 3,260,085 KRW. Based on OECD (Organisation for Economic Co-operation and Development) standards, elderly individuals living alone are considered impoverished if their monthly income is 972,406 KRW or less, and elderly couples living together are considered impoverished if their monthly income is 1,630,043 KRW or less.

OECD Korea ranks first in elderly poverty rate.
Photo by Asia Economy DB

In Korea, 37.6% of the elderly were classified as impoverished in 2021. Korea's elderly poverty rate has remained above 40%, recording 46.5% in 2011, 45.4% in 2012, 46.3% in 2013, 44.5% in 2014, 43.2% in 2015, 43.6% in 2016, 42.3% in 2017, 42.0% in 2018, and 41.4% in 2019.

Although it dropped to 38.9% in 2020, entering the 30% range, it remains the highest among OECD countries at about 2.8 times the OECD average of 13.5% (as of 2019). Most OECD countries have elderly poverty rates around 10%, and even countries with relatively high elderly poverty rates such as the United States, Australia, and Japan are in the 20% range.

This is one of the most critical issues Korea must address as it approaches a super-aged society in 2025, where the elderly population aged 65 and over will account for more than 20% of the total population.