[The Editors' Verdict]Second Baby Boomers: The Generation Born in the 1970s Is Also Coming

The term "baby boomer," referring to a large number of people born during a specific period, is closely related to war. In the United States, it denotes those born during the so-called baby boom era from 1946 to 1965, following the end of World War II. Korea's baby boomers are also not unrelated to war. It refers to people born during the baby boom era from 1953, right after the Korean War, until 1963, just before the Vietnam War participation.

The reason baby boomers have re-emerged as a keyword of interest is due to the "BOK Issue Note" report released by the Bank of Korea on the 1st. The report, titled "Economic Impact Assessment of the Entry into Retirement Age of the Second Baby Boomer Generation," contains shocking content. It predicts that due to the retirement of the second baby boomer generation and the resulting labor force reduction, the annual economic growth rate will decline by 0.38 percentage points from 2024 to 2034.

From 1964 to 1974, when the second baby boomer generation was born, one million new lives were born each year. This surpasses the scale of the first baby boomer generation. If the second baby boomers massively exit the labor market, the social shockwave is expected to be significant. This is why the Bank of Korea has diagnosed that the nation's growth potential will be considerably reduced.

A notable point in this Bank of Korea report is that those born in the 1970s, currently in their early 50s, have now become a generation that must consider retirement. Compared to the previous generation, they tend to marry relatively late, so retirement is not a realistic consideration for them. Considering the suffocating private education expenses for their children, they are destined to work much longer.

According to the Statistics Korea's Economically Active Population Survey, the average desired working age for those aged 50 and above reaches the mid-70s. For those born in the early 1970s, this means they intend to work for another 20 years. What distinguishes them from past baby boomers is that they are a generation with higher education levels and IT skills. Additionally, they are a generation rich in experiences of hobbies and cultural activities such as overseas travel, golf, movies, and concerts.

On May 21st, job seekers were looking at the job posting board at the Mid-sized Companies Job Fair held at COEX in Seoul. Photo by Younghan Heo younghan@

The problem is that quality jobs to support their social and cultural needs are limited. While it seems natural to delay the retirement age of the second baby boomer generation to protect the nation's growth potential, the situation is not that simple. It relates to the issue of sharing limited quality jobs in society. This intertwines with youth unemployment issues, leading to social concerns. If mishandled, it could become another sensitive topic leading to generational conflict.

This is why a cautious and meticulous approach from policymakers regarding the retirement issue of the second baby boomer generation is required. It is necessary to refer to cases from countries like neighboring Japan, which have experienced similar situations first, while shaping a Korean-style solution. Measures such as mandatory re-employment of the elderly, extension of the statutory retirement age, and introduction of flexible job and wage systems have been suggested as solutions, but social consensus must support these for smooth implementation.

One clear fact is that the retirement issue of the second baby boomer generation cannot be ignored. Recognizing that this is not a problem of a specific generation but a challenge our society must solve together is the beginning of the solution.

"It is important to create conditions that allow the long-term utilization of human capital accumulated throughout life."

The Bank of Korea report points out the direction our society must focus on.