Koreans Much behind in Preparing for Aged Life

Korean are much behind in preparing for their post-retirement lives with little private pension plans or savings. (image: Kobizmedia)

SEOUL, Korea, April 2 (Korea Bizwire) – While it is estimated that it costs an average of 1.37 million won (US$1,295) a month to sustain the minimum life for an aged couple, Korean are much behind in preparing for their post-retirement lives with little private pension plans or savings.

According to a National Pension Service survey asking 5,249 households aged over 50, Koreans in their 50s or older think that they will need at least 1,369,000 won monthly for a couple to maintain the subsistence level of living in their aged lives. In case of seniors living alone, it is estimated that they will need at least 834,000 won ($788) a month.

For their comfortable living, they expected that they will need at least 1,929,000 ($1,823) won for a couple and 1,193,000 won ($1,127) for a single.

However, their preparation for their old age is much behind their expectations. Among the respondents in their 50s, only 33.6 percent joined public pension programs such as the national pension and the public official pension and their expected pension receipts will amount only 540,000 won a month.

On the amount of the pension receipts, 37.1 percent of the respondents said that the amount will not satisfy their requirement. Also, only 28.7 percent of people in their 60s and older are receiving the pension now and the average amount is 522,000 won.

An official at the NPS said, “Both pension account holders and recipients recognized that the amount of pension will fail to meet the living expenses in their aged lives. To raise the pension amount, people need to join the public pension programs as early as possible.”

Written by John Choi (johnchoi@koreabizwire.com)

Lifestyle (Follow us @Lifestylenews_Korea)