Where Is Pensioner Poverty The Most Prevalent?

Four in ten people aged 66 and older in Korea were living in relative income poverty in 2022, according to the latest data from the OECD. That year, 39.7 percent of Korean seniors were living on an income below half the national median equivalized household income – the highest elderly poverty rate recorded across the OECD. The rate has remained stubbornly high over the past decade and edged up slightly between 2021 and 2022.

Still, this figure has improved from a high of 47.8 percent in 2011, when the OECD began publishing this data for Korea. Analysts note that the country has made significant strides towards improving its social security for older adults over the last decade, citing how a key factor behind the persistently high rate is the relatively recent launch of Korea’s pension system in 1988, which has yet to reach full maturity. Public pension coverage has continued to expand in recent years, though disparities remain, particulalry between men and women, due to decades of unequal access to formal employment, as noted by Moon Joon-hyun of the Korea Herald.

But, as Statista’s Anna Fleck details below, Korea is not alone in facing high elderly poverty.

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Fellow OECD countries such as Estonia, Latvia and New Zealand also reported elevated rates in 2022, each exceeding 33 percent.

New Zealand, in particular, has seen a sharp increase, rising from 20 percent in 2019 to 34 percent in 2022. A report from Te Ara Ahunga Ora Retirement Commission found that rising living costs have severely impacted older New Zealanders, with 46 percent of respondents aged 65 and over saying they had reduced social activities, 28 percent reporting they now buy less food and 26 percent delaying medical treatment.

By comparison, elderly poverty rates in other OECD nations were significantly lower in 2022.

The Nordic countries, including Denmark, Finland and Norway, continued to report some of the lowest rates, each below eight percent, reflecting their strong welfare systems and social protections.

Meanwhile, the United States reported a rate of around 23 percent, with little change since before the pandemic.

The United Kingdom remained steady at around 15 percent, while Canada’s rate was just under 12 percent.

The OECD defines elderly poverty as affecting individuals aged 66 and older, and notes that countries with similar poverty rates may still differ significantly in the actual income levels of those considered poor.