[123RF]
[123RF]

A large share of Koreans aged 65 and older who receive the basic pension are spending it primarily on essential costs such as food and housing, a new government-affiliated research report shows.

According to the National Pension Research Institute's "2025 Basic Pension Recipients Status Analysis" report released Tuesday, a survey of 2,000 basic pension recipients aged 65 and older — conducted from late July to mid-September last year — asked respondents to rank their top three uses of the benefit. Food expenses topped the list, cited as the primary use by 74.2 percent of respondents. Residential costs ranked second at 8.2 percent, while healthcare expenses came in third at 6.0 percent.

In practice, the overall monthly spending structure of basic pension recipients showed a pronounced concentration on essential living costs.

Of the average monthly consumer spending of 921,000 won ($642), food accounted for 478,000 won, or 51.9 percent. Housing and utility costs followed at 129,000 won, or 14.0 percent, while healthcare spending stood at 81,000 won, or 8.8 percent.

The government pays a monthly basic pension to Koreans aged 65 and older in the bottom 70 percent of the income bracket to support their livelihood in old age. Recipients' average monthly regular income reached 1.27 million won, of which the basic pension — paid at 330,000 won per month — accounted for 26.0 percent of total ordinary income, making it a significant source of earnings.

Yet a gap persists between what recipients feel they need to live on and what they actually earn.

Recipients estimated the minimum monthly living cost for a single elderly person at 1.09 million won, with an adequate amount put at 1.52 million won. For couples, the minimum was 1.77 million won and the adequate level was 2.42 million won.

Some 24.0 percent of recipients said their household had run a deficit over the past year, with spending exceeding income.

The deficit rate was higher among those aged 80 and older, at 26.5 percent, and among rural residents, at 34.3 percent. When a shortfall occurred, the most common way to cover living expenses was drawing on savings, deposits or cashing out insurance policies, cited by 54.1 percent of respondents, followed by receiving help from children or relatives at 35.4 percent.

When asked about their preferred basic pension amount, 47.7 percent of respondents chose 400,000 won per month, followed by 500,000 won at 20.0 percent and the current benefit level at 19.9 percent. This year's basic pension payment stands at 349,700 won per month for single-person elderly households.


thlee@heraldcorp.com