Youths and Older Workers Split on Impact of Retirement Age Extension (Image supported by ChatGPT)
SEOUL, July 24 (Korea Bizwire) — As South Korea debates a proposal to raise the statutory retirement age from 60 to 65, a new survey reveals a stark generational divide over how such a change could impact youth employment.
According to findings released Wednesday by the Korea Employers Federation (KEF), 61.2% of unemployed young job seekers aged 20 to 34 said they believe a retirement age extension would reduce hiring opportunities for younger workers. In contrast, a majority of middle-aged and older employees—defined in the survey as full-time workers with at least 15 years of experience—were less concerned: 50.6% said they expected no impact on youth hiring, while only 43% foresaw a decline.
The survey, which polled 500 unemployed youth and 500 mid- to late-career workers, underscores differing outlooks on labor market dynamics and intergenerational equity.
When asked whether a higher proportion of older employees could reduce workplace efficiency, 59% of young respondents agreed, while 62.6% of older workers disagreed. Fears of increased generational conflict were more widely shared: 80.8% of young respondents and 63.2% of older respondents said they believed tensions could rise with more senior employees remaining on staff longer.
Young job seekers attending on-site interviews.
(Image courtesy of Yonhap)
On the question of how best to extend employment for older workers, young respondents favored flexible arrangements tailored to company circumstances (36.8%), while older employees showed stronger support for a formal extension of the retirement age (46.8%).
There was some consensus, however, on the need to reform the country’s seniority-based pay system. A significant majority of both groups—82.2% of young job seekers and 71.8% of older workers—said the current structure, which rewards tenure over performance, should be overhauled.
Lim Young-tae, head of employment and social policy at KEF, cautioned against a uniform retirement age increase. “In a time of economic uncertainty and sluggish job creation, such a policy could deepen the frustration among youth struggling to enter the labor market,” he said.
Lim called for more balanced approaches such as post-retirement reemployment programs, emphasizing that policies aimed at securing older workers’ livelihoods should not come at the cost of young people’s job opportunities.
M. H. Lee (mhlee@koreabizwire.com)
