South Koreans Losing Faith in National Pension System, Turning to Crypto and Stocks: Survey Findings

The National Pension System in South Korea is facing a crisis of confidence among the younger generation, according to a recent survey. The study, conducted by the Korea Women’s Policy Institute, found that over three-quarters of people aged 20-39 do not trust the state-issued pension system.

With concerns about rising insurance premiums due to a declining population, many young South Koreans are turning to alternative investment options such as stocks and cryptocurrencies to build their retirement funds. Over half of the respondents who said they were making their own pension plans indicated that they were investing in these alternative assets.

The low birth rate in South Korea has raised questions about the sustainability of the National Pension Service (NPS) and its ability to pay pensions in the future. With older South Koreans outnumbering their younger counterparts, there are fears that the NPS fund may be depleted, leaving future retirees with inadequate support.

Despite mandatory national pension contributions, a significant number of respondents have not made any additional retirement plans. However, a growing number of young South Koreans are looking beyond the NPS and turning to investments in stocks, bonds, funds, and cryptoassets to secure their financial future.

While crypto investment has gained popularity among young South Koreans, there are concerns about the risks associated with these volatile assets. The Seoul Bankruptcy Court has reported a rise in rehabilitation claims among young people, attributing it to increased crypto and stock market investments.

As the younger generation loses faith in traditional pension systems, the trend towards alternative investments like crypto and stocks is likely to continue. With changing demographics and economic uncertainties, young South Koreans are taking control of their financial futures through innovative investment strategies.