[Why Does the Government] Raise the Age for Free Subway Rides from 65 to 70?

Government to Consider Raising Age Standard After Listening to Opinions via Task Force
Current '65 Years' Standard Has Not Been Adjusted for 38 Years Since 1982

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyunjung] "At what age do you consider someone to be an elderly person?"

How would elderly people respond to such a question? In a 2017 survey on the status of the elderly, more than half of the respondents, 74.2%, defined the age of elderly people as between 70 and 79 years old. However, the domestic Elderly Welfare Act sets the standard for elderly people, who should be given preferential treatment such as fare discounts on public transportation and facilities, at 65 years old. Recently, the government has expressed its intention to raise this standard. Why is the government formalizing this discussion now, amid a social atmosphere where the role of welfare systems is becoming increasingly important?

On the 27th, the government held the 15th Emergency Economic Central Countermeasures Headquarters meeting at the Government Seoul Office, chaired by Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki, and announced the results of discussions by the '2nd Phase Pan-Government Population Policy Task Force (TF)'. One of the most notable measures is the plan to form a TF within the year to improve the senior preferential system and initiate institutional reforms. Given the extension of average life expectancy and steady improvements in health levels due to advances in medical technology, hygiene, and public health, the government intends to accept public opinion that the age group requiring social consideration should be raised and start social discussions accordingly.

The current standard age of 65 for the senior preferential system was set in 1982. It was lowered from the previous 70 years and has remained unchanged for 38 years. According to the Elderly Welfare Act, the state or local governments must allow elderly people aged 65 or older to use transportation facilities and other public facilities free of charge or at discounted rates as prescribed by law. National and public parks, palaces, royal tombs, national and public museums, subways, and underground railways can be used free of charge, and railway fares are discounted by 50%. Discounts are also recommended at facilities operated by private companies as part of senior preferential treatment. This is a social system designed to respect (Gyeongro, 敬老) and care for the elderly.

The standard for the senior preferential system is not simply about at what age welfare benefits such as free subway rides should be provided. It is a socially sensitive issue that can have mid- to long-term impacts on the overall scale of elderly welfare, the general retirement age, and the timing of pension receipt.

[Image source=Yonhap News]

However, according to surveys, even elderly people themselves do not consider 65 years old to be 'elderly.' In the 2017 elderly status survey, the most common answer regarding the age standard for elderly people was 70-74 years old (59.4%), followed by 75-79 years old (14.8%). Only 13.8% answered that elderly people are under 69 years old.

The government's recent efforts to create jobs for the elderly in the form of public work are also related to this. Although the number of elderly people who can and want to work is increasing, suitable employment conditions are not in place, so the government is trying to provide jobs funded by taxes for the time being. In this regard, the government's move to raise the age standard for 'senior' status has a valid rationale.

Similarly, the government has decided to subdivide the elderly population, previously grouped as '65 years and older' in economic activity surveys, into '65-69 years' and '70 years and older.' Starting from January next year, the government will apply this standard when announcing employment numbers and employment rates. This can be seen as a clear intention to regard people in their 60s as part of the economic active population.

However, the government has not yet decided how much to raise the age or by when to make the change. The TF to discuss this has not yet been formed, and the plan is to start gathering opinions through the TF in the near future.