‘Silver’ Investors on the Rise | Be Korea-savvy

‘Silver’ Investors on the Rise

(image: Kobiz Media / Korea Bizwire)

(image: Kobiz Media / Korea Bizwire)

SEOUL, May 21 (Korea Bizwire)As the South Korean population slowly ages, the number of elderly investors over 65 are also on the rise in the finance industry.

According to a report released on Saturday by the Financial Supervisory Service, 23.6 percent (23.5 trillion won) of the total funds offered by financial institutions (99.9 trillion won) were purchased by investors over the age of 65.

This is a 6.3 percentage point increase from 17.3 percent in 2016.

Of note, the elderly population invested 18.6 trillion won in derivative linked securities, which accounted for 30.1 percent of all individual investments, far exceeding the overall proportion of the elderly population in society (13.8 percent).

The elderly also made their mark in stock investments. The proportion of shares owned by those over 60 was 26.7 percent, the third-largest age group after those in their 50s (33.2 percent) and 40s (27.6 percent).

But the report stated that the elderly did not actively trade in stocks. Transactions in stocks last year by all individual investors recorded 3.1 quadrillion won.

Of this, the elderly accounted for only 8.1 percent of the total (252 trillion won).

The elderly also had significant savings in bank accounts. As of end of last year, the balance of bank savings by the elderly totaled 125.5 trillion won, 20.8 percent of all bank saving deposits.

In 2012, savings by the elderly in banks totaled 94.1 trillion won, which means in just five years, savings increased by 33.4 percent.

However, so-called ‘silver’ investors were found not to be as keen in insurance-linked investments.

Only 7 percent or less were invested in insurance-related products, which is less than the number for the entire elderly population.

The Financial Supervisory Service will try to utilize such data to create more benefits for older generations.

“We will try to facilitate the sale of financial products that are long-term by allowing the elderly to diversify their portfolio and minimize losses on principal,” said an official at the Financial Supervisory Service.

Ashley Song (ashley@koreabizwire.com)

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