The number of pension recipients have increased to 106,000 in 2016, compared with 69,000 in 2014 and 82,000 in 2015. 

The failure to meet the target rate in pension payments is largely attributable to some pensioners' reluctance to receive the benefits because they want to avoid disclosing their income or assets to the government when they apply for the entitlements, the report said. 

In 2014, the government introduced the basic pension system in which every pensioner over the age of 65, except those whose annual income is in the top 30 percent category, gets a monthly pension of around 200,000 won.

By region, South Jeolla Province recorded the highest payment rate of 81.8 percent in 2016, while Seoul recorded the lowest payment rate of 52.7 percent, the data showed. (Yonhap)