[Financial Planning for the 100-Year Life] Ideal Housing Options for Later Life

The Era of Aging and 70% Single- or Two-Person Households
The Risk of "Solitary Death" in High-Rise Apartments
Apartments Turned into "Closed Spaces": Neighbors as Welfare

In today's era, where living to 100 years old is increasingly common, it is essential to think ahead and prepare for where, with whom, and how you will live in your later years, even while you are still working. This is because, once children leave their parents to live independently, most couples are left alone. Eventually, one partner may fall ill, leading to what is known as a period of spousal caregiving. Then, one partner may pass away, leaving the other alone. Later, the surviving partner may also become ill and eventually pass away. All of these events typically unfold over a span of 30 to 40 years.

Traditionally, in Korea, parents have often tried to move to a bigger house around the time their children get married, motivated by social status and as a means of investment. However, in recent years, attitudes toward large apartments have changed significantly. As of the end of 2023, there were 22.73 million households in Korea. The proportion of single- and two-person households, which was only 15% in 1980, had increased to 65% by 2023. By 2045, it is expected that about 70% of households will consist of either one or two people.

Living in a high-rise apartment during old age also requires careful consideration, as there is a strong preference for high-rise living in Korea. However, statistics on solitary deaths in both Korea and Japan are concerning. Japan began publishing official statistics on solitary deaths last year, with the first survey recording 21,856 cases. Of these, 82% were people aged 60 or older.

In Korea as well, the issue of solitary deaths is becoming increasingly prevalent. According to the Ministry of Health and Welfare, there were 3,559 cases in 2022 and 3,661 cases in 2023, having surpassed 3,000 cases in 2020 and continuing to rise each year. The main reason for the increase in solitary deaths is that people do not live in places where there is frequent human interaction. If you do not live with your children, there is no better welfare facility than a neighbor's home. However, if you are isolated on the 30th or 40th floor, who will come to visit you regularly?

The issue of apartment slumification must also be considered. The preference for apartments in Korea is longstanding. According to the 2024 Population and Housing Census, apartments account for 65% of all housing, with most being over 10 stories tall. This proportion is expected to continue rising. From January to October last year, 308,000 out of 346,000 newly built homes were apartments. The problem is population aging. Even the most luxurious new apartments will deteriorate with time. Currently, 48% of apartments are over 20 years old, and 19% are over 30 years old. If administrative agencies relocate and downtown areas shift, causing commercial districts to disappear, the situation will become even more serious. When looking at high-rise apartments standing alone in provincial cities, it is worrying to think how much trouble our descendants will have dealing with them in 10 to 20 years.

There are architects who argue that housing forms must change in the era of an aging population and single-person households. One such architect is Riken Yamamoto, who designed part of the Pangyo townhouse complex in 2009. He has observed that as people dream of owning their own homes, houses have become closed-off spaces and local communities have turned into selfish collectives. He has been advocating for the formation of neighborhood communities.

He offered the same advice to Korea: "Traditional Korean houses were originally divided into open areas and private areas. Now, all homes have become closed-off spaces. In an aging society, such housing is no longer desirable." This was his conclusion after designing the Pangyo townhouse complex and examining the situation in Korea. Although he designed all the entrances with glass on all sides, it took three years for all 100 houses to be sold, due to residents' concerns about privacy. However, over time, residents' attitudes changed. After living there for more than ten years, they found life with their neighbors to be truly happy, and at the end of last year, they even invited him to a party. As times change, so do people's perspectives.

In Japan, which became an aging society 20 to 30 years ahead of Korea, it is now common for couples or individuals living alone to choose 60 to 66 square meter homes in city centers, close to hospitals, cultural, and shopping facilities. This seems like a case worth considering.

Kang Changhee, President of the Happy 100-Year Asset Management Research Association

This content was produced with the assistance of AI translation services.