Despite Korea's aging population, new figures show that four out of five households did not have a private pension plan as of last year. This is due to the economic slowdown and the growing burden of education spending.

The Korea Institute for Health and Social Affairs surveyed more than 5,700 households nationwide and found that 78.4 percent had not enrolled in private pensions. The figure for low-income families was as high as 96 percent.

Private pensions are considered a means to supplement national pension schemes. Experts say the government should expand tax breaks or subsidies to encourage more people to better prepare for retirement.