The elderly poverty rate in South Korea has recorded its lowest level ever at 35.9%, marking a decline for the first time in three years, according to statistics from the National Data Center. The relative poverty rate represents the proportion of senior citizens earning less than half the median income of the entire elderly population, calculated based on disposable income, which includes factors such as pensions and other subsidies after taxes. This drop follows a trend where the elderly poverty rate was previously over 40% up to 2019, with fluctuations occurring in subsequent years before falling once again in 2024.

Experts have analyzed that this reduction in poverty rate is primarily due to a demographic shift where older generations, particularly those who have paid into the national pension scheme for extended periods, are now entering senior age. The mortality of those who were significantly older and more impoverished, coupled with recent cohorts of baby boomers entering retirement with greater pension benefits, have contributed positively to this trend. Scholars point out that continuous increases in basic pension benefits and the growth of employment opportunities for the elderly sector, along with the significant demographic transition, play pivotal roles in this development.

While the current rate is an indication of progress, it still remains substantially high compared to the OECD average of 14.8%. For context, other countries like the UK and Spain report elderly poverty rates of 14.9% and 13.1%, respectively. This gap highlights the ongoing challenges faced by South Korea in addressing elder poverty, indicating the need for continuous improvement and policy initiatives aimed at further reducing the poverty rate among senior citizens, as experts argue that gradual change is essential for the demographics of aging in the nation.