"People Over 40 Retire 2.6 Years Earlier Than Juniors"

Hankyung SME Center, Survey on Job-Seeking Activities for Those Over 40
Average Retirement Age 50.5, Earlier Than 53.1 for Ages 20-40

The average retirement age of middle-aged workers aged 40 and over was found to be 2.6 years lower than the average retirement age of workers in their 20s to 40s.

The Korea Employers Federation Small and Medium Business Cooperation Center announced the results of this year's survey on job-seeking activities of middle-aged workers, targeting 949 workers aged 40 and over, on the 1st.

The survey showed that the average age at retirement from their main workplace was 50.5 years. For men, it was 51.1 years, and for women, 49.3 years. The center explained, "The main workplace refers to the place where they worked the longest throughout their career."

This average retirement age is lower than that of their juniors. According to a recent survey commissioned by a media outlet to the employment platform Incruit, the expected average retirement age of workers in their 20s to 40s was 53.1 years. The retirement age of workers aged 40 and over surveyed by the center was 2.6 years lower.

The average length of service at the main workplace for the 949 respondents was 14 years and 5 months. Men worked for 18 years and 4 months, while women worked for 10 years and 5 months. Those who retired before the age of 50 accounted for 45.9% of the total.

The proportion of retirement due to reaching the mandatory retirement age was only 9.7%. The rate of involuntary retirement, including recommended resignation, honorary retirement, and layoffs, was 56.5%.

Even after reemployment, wages sharply decreased. Among middle-aged workers who answered that they had reemployment experience after retiring from their main workplace, 66.8% of the total, 67.4% (about 7 out of 10) said their wages had decreased after reemployment. The wage level was on average 62.7% compared to their main workplace.

Before reemployment, 74.5% were regular employees at their main workplace. After reemployment, this dropped by 32.4 percentage points to 42.1%.

A middle-aged job seeker visiting the 2023 Mid-sized Companies Job Fair held at COEX in Gangnam-gu, Seoul on July 3 is looking at the company recruitment information board together with young job seekers.
[Photo by Yonhap News]

The desired monthly salary for middle-aged job seekers upon reemployment was on average 2.94 million won. This is an increase of 210,000 won (7.7%) from last year's 2.73 million won. Men desired an average of 3.29 million won, and women 2.56 million won. The center stated, "This appears to reflect the fact that the minimum wage increased by 5% and 2.5% this year and next year compared to the previous year, as well as rising inflation."

Middle-aged job seekers cited "a social atmosphere that emphasizes age" (32.1%) as the biggest difficulty in job seeking. This was followed by a shortage of hiring demand (17.0%) and a lack of jobs where their experience could be utilized (14.0%).

The top priorities when considering reemployment were wage level (17.9%), job content (17.0%), and commuting distance (14.0%), in that order.

When asked until what age they hope to continue economic activity (work), the average response was that they want to work until 68.9 years old.

By age group, those in their 40s wanted to work until 67.5 years old, those in their 50s until 68.9 years old, and those aged 60 and over until 70.8 years old. It was found that the older the age, the longer they wanted to work.

Park Cheol-han, director of the center, said, "As the economy becomes more difficult and average life expectancy increases, more people have to work even in old age," adding, "There is a need for open discussions about employment contract conditions such as part-time work that suit the characteristics of the middle-aged generation."

The center operates free life planning and re-challenge/career change school programs for job seekers and retirees (or those planning to retire) aged 40 and over. Various programs such as middle-aged job fairs, free resume photo shoots, and employment lectures are also conducted.