"Unprepared for Retirement... Sharp Increase in Individual Debt Adjustment Among Those Aged 60 and Over"

Number of Finalized Individual Debt Adjustment Cases Among Those Aged 60 and Over Increased 1.8 Times in 5 Years
Amount of Principal Reduction in Debt Adjustment Also Doubled
Lee Hunseung: "Financial Safety Net for the Elderly Must Be Expanded"

It has been found that the number of people in their 60s undergoing individual debt adjustment due to economic difficulties has increased significantly.

According to data submitted by Assemblyman Lee Heonseung of the People Power Party, a member of the National Assembly's Political Affairs Committee, from the Credit Counseling & Recovery Service, the number of people aged 60 and over who finalized individual debt adjustment over the past five years increased by 1.8 times, while the amount of principal reduction doubled.

The Credit Counseling & Recovery Service operates debt adjustment programs such as Fast-Track Debt Adjustment, Pre-Workout, and Individual Workout to help individuals who are struggling with debt avoid bankruptcy and restore normal economic activity.

From 2020 to 2024, the number of finalized individual debt adjustments rose from 115,815 to 174,841, a 1.5-fold increase, and the amount of principal reduction increased from 1.0602 trillion won to 1.7153 trillion won, a 1.6-fold increase. From January to July of this year, the number of finalized cases was 101,759, and the amount of principal reduction was 1.0195 trillion won.

When looking at the growth rate of finalized individual debt adjustment cases by age group over the past five years, those in their 20s and below increased by 54.8%, those in their 30s by 46.7%, those in their 40s by 43.1%, and those in their 50s by 46.9%. However, those aged 60 and over showed a much higher increase of 82.6%.

Examining the growth rate of the amount of principal reduction by age group over the past five years, those in their 20s and below increased by 105.2%, those in their 30s by 68.6%, those in their 40s by 44.4%, those in their 50s by 52.6%, and those aged 60 and over by 102%.

The number of finalized individual debt adjustment cases among those aged 60 and over increased at the steepest rate, and the growth rate of the amount of principal reduction was also very high.

From 2020 to 2024, the amount of principal reduction per person in finalized individual debt adjustment cases was highest among those in their 50s throughout the period. As of 2024, the amount of principal reduction per person by age group was 5.49 million won for those in their 20s and below, 8.91 million won for those in their 30s, 10.58 million won for those in their 40s, 11.22 million won for those in their 50s, and 10.68 million won for those aged 60 and over.

Assemblyman Lee Heonseung stated, "The sharp increase in the scale of debt relief for the elderly indicates that their financial vulnerability is worsening," and emphasized, "With the rapid pace of population aging, there is concern that many people will face a retirement trapped in debt. The government must urgently strengthen the financial safety net for seniors."