The Main Agent of Retirement Planning is "Myself"... South Korea's Middle-Aged and Elderly in Crisis

1 in 2 People Say "Economic Independence Is Difficult"
Average Age to Start Retirement Is 69.4 Years

One out of two middle-aged and elderly people believes that it is difficult to be financially independent without help from the government, social organizations, or family.

According to the "9th (2021) Survey on the Economic Life and Retirement Preparation of Middle-aged and Elderly People" report by the National Pension Service Research Institute, 54.7% of middle-aged and elderly people aged 50 and over perceive themselves as having independent economic power to live without relying on others' assistance.

On the other hand, 45.3%, or about 4.5 out of 10 people, thought that they do not have a fixed and stable source of income sufficient to manage household living expenses on their own.

When asked whether middle-aged and older adults who judged themselves not to be in the retirement phase were preparing for retirement, 59.9% answered that they were not, indicating a high likelihood of facing financial difficulties during retirement.
[Photo by Yonhap News]

The National Pension Service Research Institute conducted a field survey of the National Retirement Security Panel from August 1 to November 23, 2021, targeting 4,024 households (6,392 individuals) aged 50 and over and their spouses.

When asked who should play the main role in preparing for retirement, 64.8% of all respondents answered themselves. This was followed by spouses (16.4%), the government (16.1%), children (2.4%), and society (0.4%).

The average subjective perception of the start of old age among respondents was 69.4 years. 42.5% considered themselves to be in old age, while 57.5% believed they had not yet entered the old age period.

Among middle-aged and elderly people who perceived themselves to be in old age, the sources of retirement living expenses were found to be basic pension (25.6%), living expenses and allowances received from children and relatives (19.4%), national pension (15.2%), spouse’s income (11.0%), general savings and deposits (10.2%), and work activities (9.5%).

When asked whether they were preparing for retirement, 59.9% of middle-aged and elderly people who judged themselves not to be in old age answered that they were not preparing, indicating a high possibility of facing financial difficulties during retirement.