Defying Age: 41% of Koreans Embrace Extended Retirement, Eager to Work Beyond 70
Securing Retirement Income: A Challenge in Korea
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In Korea, a significant percentage of people agree with extending the retirement age, with 41% in favor. This figure is three times the average for major foreign countries. On the other hand, the percentage that agrees to early retirement is the lowest, indicating a view that older workers should be promoted more.
A research report titled ‘Comparison of 10 countries on citizens’ perceptions of aging and pensions’ published by the Korea Institute for Health and Social Affairs (BOSAYeon) highlights the economic concerns and burdens of an unusually fast aging population in Korea. The report is based on a survey conducted by the National Health Research Institute, in collaboration with four foreign partner organisations, among 1,500 to 2,000 adult men and women in 10 countries.
The survey reveals that 76.1% of Korean respondents agree that the increase in the elderly population compared to the working population is a threat to the economy. This is significantly higher than the average agreement rate across 10 countries, which stands at 44.8%. Korea also has the highest percentage of people who agree with raising the retirement age of all workers, at 41.2%, which is close to three times the general average.
Furthermore, the survey shows that 44.8% of Korean respondents have no intention to retire early, which is more than 1.5 times the average of 25.0% for 10 countries. The proportion of people seeking to reduce public pension benefits is also higher than average in Korea, with 24.7% and 28.6% agreeing to reduce benefits for current subscribers and beneficiaries, respectively.
Lee Da-mi, an associate research fellow at the National Institute of Health and Welfare, who conducted the study, notes that the willingness to work longer is strongly reflected in the survey results. He attributes this to the difficulty in guaranteeing an adequate retirement income with a public pension alone and the need to mobilize the aging workforce to respond to demographic change, low growth, and financial instability of national pensions.
The survey also highlights concerns regarding the finances of the national pension and the need for measures to improve it. However, Lee Da-mi cautions that salary cuts must be decided carefully, given the high poverty rate among the elderly in Korea.
Key Findings:
- 41% of Koreans agree with extending the retirement age, three times the average for major foreign countries.
- 76.1% of Korean respondents agree that the increase in the elderly population is a threat to the economy.
- 44.8% of Korean respondents have no intention to retire early.
- The proportion of people seeking to reduce public pension benefits is higher than average in Korea.