Seoul targets midlife savings gap with new pension scheme

Seoul authorities have unveiled a midlife savings programme designed to address a financial protection gap affecting workers in their late career stages. The scheme targets individuals who fall outside existing social safety nets—too old to qualify for youth employment support but too young to access traditional pension benefits.

The savings vehicle is structured to help workers build retirement capital during critical earning years before they become eligible for state pensions. Government projections indicate that participants could see their accounts grow to approximately 16.4 million won under the programme's terms.

The initiative reflects broader policy concerns in South Korea about retirement preparedness among middle-aged workers. With the country's ageing population and changing employment patterns, officials have identified this demographic as particularly vulnerable to income insecurity in later years.

The programme is part of Seoul's efforts to strengthen social protection across all age groups while encouraging personal savings habits. Implementation details are expected to clarify eligibility criteria, contribution mechanisms, and the timeline for account accumulation across the working population affected by this savings gap.