79.8% of respondents expressed a favorable attitude towards raising the retirement age. (Image courtesy of Yonhap)
SEOUL, Oct. 22 (Korea Bizwire) – As discussions about extending the retirement age gain momentum in South Korea, a recent survey reveals that 8 out of 10 companies view such a change positively. The push for this shift comes as the nation grapples with a shrinking working-age population and improvements in the health of older adults.
According to a survey conducted by job portal Sarami, involving 461 companies, 79.8% of respondents expressed a favorable attitude towards raising the retirement age.
The primary reason cited for this support, by 57.9% of the companies, was the ability to leverage the expertise of experienced workers. Other factors included improving the financial stability of older individuals (39.7%), preparing for the decline in the working-age population (34.2%), potentially increasing the applicant pool for hard-to-fill positions (31.8%), and boosting employee morale due to job stability (24.2%).
On average, companies considered 65.7 years to be an appropriate retirement age. A majority (57.9%) specifically favored 65 years, while 13% suggested 70 years or older.
However, companies opposing the extension of the retirement age cited concerns about its potential negative impact on job creation for youth and new graduates (44.1%). Additional worries included the possibility of personnel stagnation affecting corporate culture (41.9%) and companies becoming more conservative (35.5%).
The survey also revealed that over half (52.9%) of the companies are considering hiring employees in their 50s and 60s, often referred to as “young seniors.” This trend is particularly pronounced among companies facing labor shortages, who view these experienced workers as a solution to their hiring challenges.
The primary motivation for hiring older workers, according to 47.1% of respondents, is their extensive experience and professional networks. Other reasons included filling positions less appealing to younger workers (30.3%) and the tendency for older employees to remain in their jobs longer (28.7%).
Conversely, companies reluctant to hire older workers cited concerns about potential discomfort due to age differences with existing staff (40.6%), perceptions of lower productivity compared to younger employees (30%), higher salary expectations (26.3%) and difficulty with adapting to corporate culture or hierarchy (23.5%).
M. H. Lee (mhlee@koreabizwire.com)
