National pension will be depleted by 2050

By Lee Kyung-min

National pension will be depleted by 2050, according to a report released on Tuesday.

The estimated profit margin was overrated since the committee’s calculation based itself on an overestimated target rate, according to Prof. Won Seung-yeon at Myongji University.

He presented his findings yesterday in a forum discussing and assessing pension fund management at the National Assembly Hall.

“Based on the new calculation, the money will be gone faster than expected,” he added.

To meet the target profit margin, the fund would have to risk the loss, which will infuriate subscribers depending on the money to be collected after retirement.

“Risky management is a choice. Whatever decision the committee makes, it shouldn’t cause confusion or distrust among the people,” he added.

However, the pension management committee differs. “In a long-term perspective, he is too pessimistic if he estimates the profit margin stays only around one percent, barely offsetting the national growth rate and inflation,” said an official from the committee.