SEOUL, Sept. 13 (Korea Bizwire) – A recent study has revealed that South Koreans in their thirties are concerned about their longevity, and are highly interested in pension insurance products, but are not as financially prepared as individuals in other age groups.
According to a survey conducted on September 13 by the Korea Insurance Development Institute (KIDI) on unretired individuals aged from 30 to 59, the average desired lifespan of trigenerians – individuals in their 30s – was the longest at 87.8 years compared to 87.7 of for respondents in their 50s and 87.1 for those in their 40s.
The average expected duration of good health for trigenerians was also longer at 85.1 years compared to other age groups.
Trigenerians assessed longevity as the riskiest factor for their post-retirement life among perils including disease and medical expenses. Longevity risk is a condition where one lives beyond one’s expected lifespan without adequate retirement income.
When the risk factors were rated numerically, longevity risk was assessed at 81.1 points while diseases and medical expenses came in at 70.9 and 65.3 respectively.
In addition, respondents in their 30s were more likely to consider purchasing pension insurance products, with 43.8 percent of trigenerians expressing their intention to buy a personal pension product, while only 27.3 of respondents in their 40s and 7 percent of those in their 50s had similar intentions.
However, the awareness level of personal pension details among trigenarians was the lowest at 49.5 points in comparison with those in their 40s at 53.5 points and 51 for those in their 50s.
The actual insurance purchase rate was found to be low for 30-somethings as well. According to an analysis of last year’s personal pension insurance purchases, the purchase rate for those in their 30s was 25.1 percent, whereas it was 29.8 percent for individuals in their 40s and 26.5 for those in their 50s.
Education and public awareness campaigns to counter longevity risks should be strengthened, and customized insurance products need to be developed so as to support post-retirement preparations, said the KIDI.
Lina Jang (email@example.com)