Elderly poverty rate highest in S. Korea among OECD

SEOUL, Nov. 8 (Yonhap) -- The rate of poverty among elderly people in South Korea, one of the world's fastest-aging societies, is the highest among leading economies, a report showed Saturday.

The poverty rate among households headed by those aged 65 and older stood at 45
percent as of 2006, more than three times higher than the 13 percent average
among member states of the Organization for Economic Cooperation and Development
(OECD), the agency said.
The OECD is a Paris-based organization comprised of the world's developed
economies.
South Korea, the only nation with a rate above 40 percent, was trailed by Iceland
and Mexico, with 31 percent and 28 percent, respectively. Australia and the
United States came next, with 27 percent and 24 percent, respectively.
Local experts attribute South Korea's high elderly poverty rate to the rapid
transformation of the family structure and an underdeveloped welfare system.
Decades prior, it was common in South Korea for extended families to live under
one roof and offer each other financial support. But in recent years the nation
has seen a massive shift towards becoming a more individualistic, self-supporting
society.
"There still aren't many people benefiting from the national pension system as
the program is still in its early stages," Yoo Kyung-joon, a researcher at the
Korea Development Institute said.
The dismantling of large family units and a rapidly-aging population means more
elderly are living on their own with limited economic means, he added.
The country has already become an aging society, with people aged 65 and over
accounting for 7 percent of the population in 2000. South Korea's population
currently stands at just over 49 million.
odissy@yna.co.kr