Senior job seekers looking at a bulletin board containing information on job posts at a job fair held in the southeastern port city of Busan. (Yonhap)
SEOUL, Jan. 12 (Korea Bizwire) — The average amount of severance pay for retirement falls short of 100 million won (US$91,000), far below the expectations among those in their 40s and 50s that they would need at least 200 million won to support their children’s education as well as their marriage after they retire.
The Korea Insurance Development Institute released a report on Monday which claimed that people in their 40s and 50s living in the greater Seoul area and other major metropolitan cities are concerned over the exorbitant cost of children’s education and marriage after they retire.
They were expecting to spend approximately 69.8 million won for children’s education, and 101.9 million won for supporting their children’s marriage.
However, they expected to get paid an average of 94.6 million won in severance pay for retirement, which is far short of the cost they expect to bear for their children.
They claimed that, as a retired couple, they would need an average of 2.27 million won each month to cover living expenses, or 1.3 million won if single.
Reports released by Statistics Korea in 2019, however, showed a plunge in household income after retirement, going from an average of 62.5 million won in the pre-retirement era to as low as 27 million won after retirement.
People in their 40s and 50s pointed to financial difficulties (31.1 percent) as the primary shortcoming of retiring. Others blamed deteriorating health or disability (17.1 percent) or feeling dull (16.5 percent).
They also had few or no friends or acquaintances to ask for financial support in times of emergency.
According to a Statistics Korea report, only 33.4 percent of people over 65 years of age were capable of asking for financial help from acquaintances.
As a result, seniors demonstrated a tendency to want to stay employed unless health or other factors force them to retire. The National Pension Research Institute reported that 52.8 percent of those in their 60s are currently still employed.
H. M. Kang (hmkang@koreabizwire.com)
