The government on Friday announced a plan to “gradually” increase the national pension premium rate, in a bid to improve the financial soundness of the country’s pension system amid the aging population.

The Ministry of Health and Welfare said the gradual hike in the premium rate is “inevitable” to ensure the sustainability of the system and vowed to push to differentiate the increase rate among age groups for fairness.

Meanwhile, Minister of Health and Welfare Cho Kyoo-hong on Friday announced the ‘5th National Pension Comprehensive Operation Plan’ containing the long-term financial outlook and system improvements for the national pension system.

Cho said that the government had prepared a total of 15 tasks in five major areas, but did not specify the potential adjustment of the nominal income replacement rate.

The ministry also proposed a plan to vary the rate of increase in premium by age group, where if the insurance premium rate is adjusted to 15-percent from the current nine-percent, the premium will by raised by one percentage point per year for six years for the age group that is relatively close to receiving benefits, while for the younger generation, it would be increased the same six-percentage points over a longer period of time.

The proposal will be submitted to the Parliament following the deliberation of the Cabinet and approval by President Yoon Suk Yeol.