
South Koreans Making Modest Progress in Retirement Readiness, But Gaps Widen (Image supported by ChatGPT)
SEOUL, June 23 (Korea Bizwire) — South Koreans in their 30s to 60s scored an average of 69.9 out of 100 in overall retirement preparedness, reflecting modest improvement over the past five years but revealing persistent disparities across income levels, marital status, and geographic regions.
According to a new government-commissioned report released by the Korea Institute for Health and Social Affairs (KIHASA), the national retirement readiness score rose by 2.4 points from 67.5 in 2019.
The study, conducted in August and September 2024, surveyed 3,040 adults aged 30 to 69 using 37 diagnostic indicators across four key areas: health, finances, social relationships, and leisure.
Health preparedness ranked highest at 74.5 points, followed by financial readiness at 67.6, interpersonal relationships at 64.9, and leisure at 60.3. While financial readiness improved significantly—up 7.3 points from five years ago—scores in interpersonal relationships declined, a shift researchers attribute to changing family structures.
Economic status emerged as a decisive factor. High-income households averaged 73.4 points in overall preparedness, compared to 67.8 for low-income groups. The financial gap was especially stark, with the highest-income group scoring 73.4 and the lowest at 64.6. Disparities also extended to leisure activities, social ties, and health.
Marital status, household size, and residence location also influenced scores. Those with spouses (71.0) scored better than singles (65.6), multi-person households (70.8) outperformed single-person ones (65.0), and urban residents (72.1) were generally more prepared than those in rural areas (67.2).
Paradoxically, South Koreans in their 60s—the group closest to or already in retirement—showed the lowest preparedness at 66.9, while those in their 40s fared best at 71.1. Respondents expected to work until age 66.5 on average, with those in their 60s anticipating continued employment until 70.7. The average estimate for post-retirement living expenses was 3 million won per month.
When asked to self-evaluate their readiness, respondents gave themselves an average score of 5.28 out of 10.
Despite government efforts since 2016 to provide public retirement planning services, only 3 percent of respondents said they were familiar with the program. The report urges greater public awareness campaigns and suggests expanding surveys to include younger adults in their 20s, along with demographic-specific diagnostic tools.
The findings come amid growing concern over South Korea’s rapidly aging population and the widening inequality in retirement prospects—a challenge that continues to shape the policy agenda under President Lee Jae-myung’s administration.
Ashley Song (ashley@koreabizwire.com)