Lim Jong-ik, 69, watches television at his home in Seongbuk District, Seoul, on June 10. Korea Times photo by Song Ju-yong
Lim Jong-ik, 69, vividly remembers that day. On Jan. 26, 2020, he was lying alone on the floor, flipping through TV channels. Despite the abundance of New Year's special movies and programs, nothing caught his attention. Wrapped in a blanket in the cold corner of the room, he tried to fall asleep.
A few hours later, he woke up to find one side of his face numb. It was facial nerve paralysis. The mirror on the wall reflected an old man, spending the New Year alone in a small 20-square-meter (about 6-pyeong) one-room apartment with neither money nor family.
Lim never imagined that he would be so miserable. He was one of the most diligent workers. After graduating from high school, he took on various jobs, from managing a dry cleaner to working in steel production, doing whatever he could to earn money.
With the money he saved, he started a fabric business in his 30s. After the 1997 financial crisis, he switched to running a restaurant. The business didn't go well, and he and his wife parted ways early on. In his middle years, he became a laborer, living hand-to-mouth with no thought of saving for retirement.
Despite not relying on anyone else for over 40 years, he was left with nothing but poverty. The onset of facial nerve paralysis felt like the beginning of his suffering in old age.
At least he could still work back then, but four years later, no labor office would offer jobs to someone nearing 70. With the help of an acquaintance, he had been barely getting by working on small villa construction sites, but even those opportunities dried up this year.
His applications for public work programs at the district office were repeatedly rejected. Recently, he applied for a cleaning job at a university hospital in Seoul through the district office, but there was no response.
His only monthly income is the basic pension of 340,000 won ($245). This amount barely covers fixed expenses like management fees, electricity, water, gas, communication bills and insurance premiums. He managed by eating only two meals a day with the money he had saved.
He even gave up his hobby of hiking. It has been a month since he started "self-isolating," spending all day watching TV in his windowless one-room apartment. On June 10, he opened his bank app on his phone and saw the end in sight. The screen displayed a balance of some two million won, enough to last only two or three months. His neck stiffened with tension.
On Parents' Day, May 8, older adults line up for a free meal at Topgol Park in Jongno District, Seoul. Korea Times photo by Ha Sang-yoon
Half of those over 76 live in poverty
Hwang Jae-woo, 74, sat alone on a bench in Tapgol Park, Jongno District, Seoul, letting out a deep sigh as he looked at his phone. The screen read, "Balance: 12,780 won on June 4."
On May 25, his total income of 1 million won, consisting of a 480,000 won national pension and a 520,000 won basic couple's pension, had come in. This money was a lifeline for the couple. They used it to pay rent and utility bills and then covered their meals with what was left.
Although it was tight, they managed without asking their 40-year-old daughter for help. However, this month, for some reason, their balance had run out in just 10 days.
Unexpected circumstances were to blame. His wife had been suffering from severe back pain, and Hwang himself had recently been diagnosed with stomach cancer during a health check-up.
Due to the resignation of resident doctors, it was hard to schedule outpatient appointments at local hospitals, but there was availability at a university hospital in Seoul. The couple began traveling between Daegu and Seoul via the SRT (Super Rapid Train). Even with discounts for older adults, the round-trip transportation cost over 100,000 won, and the medical expenses were substantial.
There was no way to generate additional income. Hwang had driven city buses for over 30 years before retiring at 62 in 2012. For nearly a decade, he did manual labor to sustain their retirement, but there were no opportunities left for someone over seventy.
"If only I hadn't known about the stomach cancer, I might have just lived out my days without the stress of worrying about money," he said.
In 2021, the poverty rate among older adults in Korea was 39.3 percent. This means that 4 out of every 10 people aged 66 and older earned less than half of the median income. This rate is nearly four times higher than the poverty rate for those aged 18 to 65, which stands at 10.6 percent.
Among the 37 member countries of the Organization for Economic Cooperation and Development (OECD), only Korea and Estonia have a gap of more than 20 percentage points between the poverty rates of older adults and those aged 18 to 65.
Neighboring Japan, for instance, has a much smaller gap between the poverty rates of the 18 to 65 age group (13 percent) and older adults (20 percent).
On the morning of June 15, older adults are lined up in front of a church in Gyeyang District, Incheon. The church gives 5,000 won in cash to older adults who attend the Saturday morning service every week. Korea Times photo by Park Joon-seok
Social isolation can lead to suicides
In Korea, many individuals, like Lim and Hwang, live ordinary lives until middle age but fall into poverty after retirement. This is primarily due to the inadequacy of public pensions, which are the main source of income for older adults after retirement.
Many self-employed or irregular workers do not contribute to the National Pension and even those who do receive relatively low payouts. Consequently, they find it difficult to sustain themselves on their "pocket money" pensions and are forced to re-enter the labor market.
For those unable to work due to aging or illness, the struggle with poverty and social isolation can lead to suicide. The suicide rate among older adults in Korea is the highest among OECD countries, at 46.4 per 100,000 people, closely linked to the issue of poverty.
Despite this, successive governments have repeatedly postponed pension reforms or concluded them ineffectively.
The issue of poverty among older adults can no longer be ignored. In 2021, the poverty rate for those aged 66-75 was 30.5 percent, while for those aged 76 and older, it soared to 51.4 percent.
In a report titled "Poverty Among the Elderly Diagnosed by Income and Assets and Policy Directions," published in September last year, Lee Seung-hee, a research fellow at the Korea Development Institute, calculated the poverty rate assuming that older adults could generate rental income from their assets.
The findings revealed a poverty rate of 45.9 percent for those born in the late 1930s and 37.2 percent for those born in the early 1940s. This indicates that a significant number of older people in their late 70s to mid-80s are impoverished, lacking both assets and income.
Long journey for 5,000 won service
The reality is even worse. On the morning of June 15, at 9:30 a.m., a line over 50 meters long formed in front of a church in Gyeyang District, Incheon.
Every Saturday, this church provides 5,000 won in cash to the first 500 aged 65 and older who attend the service.
Word of this spread, prompting older people to queue up early, participating in what is known as an "open run."
An 80-year-old man, for example, took a train from Gunpo Station in Gyeonggi Province at 7 a.m., transferring several times before arriving at the church around 8:30 a.m.
A church official said, "Some people come from as far as Asan in South Chungcheong Province and Pocheon in Gyeonggi Province."
This stark situation highlights the urgent need to address the severe poverty faced by the older adult population in Korea.
When asked why they flocked to the church, 81-year-old Kim, who survives on a combined basic pension of 520,000 won with his wife, said, "During the week, we get by with just kimchi and rice, but on Saturdays, I can afford a bowl of jjajangmyeon, which is nice."
Park, 80, from Michuhol District, Incheon, was out of breath after walking 1.4 kilometers from Jakjeon Station on Incheon Subway Line 1 to the church.
"I save every 5,000 won to avoid asking my children for money," he said. "I won't spend this money. I'll have lunch at home," Park said.
Ko Hyun-jong, secretary general of Senior Union, an organization for workers over 55, recalled a poignant incident.
"Four years ago, a 73-year-old man, living solely on the basic pension, brought a bottle of Bacchus filled with pesticide and threatened to drink it on the spot if we didn't find him a job," Ko said.
The problems faced by impoverished older adults extend beyond economic hardships. Social isolation and emotional issues, such as depression, are also severe.
Seo, 66, who worked as a laborer in the paper industry for 30 years, now lives alone in a small 5-square-meter (1.5-pyeong) goshiwon (a tiny, low-cost room).
His income consists solely of an 840,000 won national pension and an 187,000 won basic pension. After paying for rent, diabetes medication, and medical expenses, it is difficult for him to afford three meals a day.
Older adults hold a rally in front of the National Assembly, calling for a non-discriminatory basic pension, Oct. 1, 2021. Yonhap
Low-income seniors' suggestions ignored
He resorts to soaking cheap oatmeal in water for breakfast and dinner daily. Seo said, "I have no extra money, so I've cut off all my friendships. I often feel like there's no point in living."
A practical solution to alleviate the poverty problem among low-income, low-asset older adults is increasing the basic pension. This is because measures like raising the income replacement rate of the national pension would only apply to current contributors.
Last year, the National Pension Financial Calculation Committee, a government advisory body, recommended narrowing the recipients of the basic pension (currently up to 330,000 won for the poorest 70 percent of older adults) to low-income individuals while increasing the amount.
Currently, even a single older person earning 4 million won a month can receive the basic pension, but the idea is to give an additional 100,000 won to those truly in need rather than to those who are relatively well-off.
However, the pension reform bill submitted to the National Assembly by the government last October did not include these recommendations. It only included the president's pledge to increase the basic pension to 400,000 won.
This omission is likely due to the political burden of reducing the number of basic pension recipients, which is nearing 7 million people.
With the average monthly national pension payout being only 620,000 won, there are criticisms like, "Who would pay into the national pension for 10 or 20 years if only the basic pension is raised?"
Some in the government are optimistic that the poverty problem will ease when those born in the 1960s reach old age. This generation, having gone through a period of rapid economic growth, generally has stable jobs and substantial assets.
The idea is that as the underprepared 1940s generation and earlier exit and the 1960s generation becomes old, the problem will be resolved.
Consequently, the urgent issue of poverty among the old was not given significant weight in this round of pension reform discussions.
Lee Sang-hak, policy director at the Senior Hope Union, said, "Both the government and the National Assembly are aware of the severity of poverty among older adults but are ignoring it."
An older adult collects waste paper using a handcart in an alley in Seoul. Newsis
Experts warn of future disaster
Experts warn that ignoring the problem could lead to an even greater disaster, as future generations are also structurally likely to face poverty in old age.
The core issue remains the same: in 10 or 20 years, the national pension benefits will still be insufficient to cover retirement living expenses. The average age at which workers in Korea retire from their main job is 49.3 years.
The National Pension is designed to provide 40 percent of the average income (income replacement rate) after 40 years of contributions, but few people actually manage to contribute for the full period. Consequently, pension benefits are low.
Moreover, those born in the 1960s, soon to enter old age, are a "sandwich generation" burdened with supporting both their parents and their children. A survey conducted by the foundation Care and Future from June 8 to 15 among 980 people born in the 1960s found that only 62 percent were preparing for retirement.
Ko at the Senior Union, said, "Among my twenty friends who are currently 59 years old, only one remains at their job." He added, "The current average monthly national pension benefit is 600,000 won, but this is just an average; most receive less than 400,000 won. Future older generations will likely face a similar situation."
Lee Sang-hak, the policy director at the Senior Hope Union, echoed this sentiment, saying, "The issue of elderly poverty reflects the labor market. Workers in small businesses and irregular employment are likely to experience the same poverty issues faced by today's older adults. Structural reforms in the economy and society to enhance potential growth rates and expedited pension reforms are crucial."
This article from the Hankook Ilbo, a sister publication of The Korea times, is translated by a generative AI and edited by The Korea Times.