Arya News - Under a blueprint unveiled during Mayor Oh Se-hoon’s campaign, participants would contribute 80,000 won ($58) a month for 10 years, while the city would add 20,000 won
SEOUL – Seoul wants to help middle-aged residents bridge a potentially lean stretch between their last paycheck and their first state pension payment by paying into long-term savings accounts.
Under a blueprint unveiled during Mayor Oh Se-hoon’s campaign, participants would contribute 80,000 won ($58) a month for 10 years, while the city would add 20,000 won. Seoul estimated that the account could grow to as much as 16.4 million won, including investment returns, though the figures are campaign targets and the final terms have yet to be set.
The city is consulting with the Ministry of Health and Welfare over the proposed social security program and is aiming to launch it next year, according to the Seoul Metropolitan Government on Monday.
“We are aiming to launch the program in 2027, but consultation with the Health Ministry is one of the steps we need to complete first,” a Seoul city official told The Korea Herald. “This would be Seoul’s first pension-style savings program targeting the so-called sandwich generation.”
The initiative stems from a campaign pledge made by Oh ahead of the June 3 local elections. Under the proposal, the accumulated savings would be paid out in monthly installments to help cover the period between retirement and the start of National Pension benefits.
Eligibility rules, including age, income and asset thresholds, have yet to be determined. The city also has yet to select the financial institution that would manage the accounts or finalize the matching amount, enrollment scale and payout schedule, according to an official overseeing the program.
“People in their 40s and 50s have worked hard while caring for both their parents and children, yet they have largely been overlooked. Seoul will now help shoulder their burden,” Oh said when unveiling his policy package for middle-aged residents in May.
The proposal comes amid long-standing criticism that central and local government support has focused heavily on younger and older generations, leaving many middle-aged residents in a policy blind spot despite the financial burden of supporting both parents and children.
Seoul already operates a matched-savings program for young workers, under which the city matches their monthly contributions for up to three years.
The city government on Thursday issued an advance notice of proposed revisions to the enforcement rules of a Seoul ordinance aimed at supporting residents’ financial stability. Public comments will be accepted through Sept. 16, according to the city’s legal administration website.
The proposed revisions would extend the maximum period during which the city can provide asset-building subsidies from three years to 10 years.