Seoul, South Korea – A recent survey conducted by Money Today, commissioned by Gallup Korea, has revealed that South Korean full-time employees aged 30 to 59 anticipate needing an average of 5.56 million won (approximately US$4,200) per month to maintain their household after retirement. The survey, which polled 1,009 full-time employees nationwide, highlighted significant concerns about income gaps, especially during the transition period to retirement and the subsequent need for healthcare and long-term care.
As expected, the fear of an income gap after retirement grew more pronounced with age. Those in their 50s (91%) expressed the greatest concern, followed by those in their 40s (89%) and 30s (88%). Moreover, respondents with children were more likely to worry about the income gap (90%) compared to those without children (80%).
The survey also found that those with lower incomes were more anxious about the potential income gap. Individuals earning less than 3.99 million won and between 4 to 5.99 million won per month reported the highest levels of concern, at 91% and 92%, respectively.
Living Expenses and Healthcare Top Concerns
When asked about their biggest financial concerns during the post-retirement period, respondents cited living expenses (excluding housing) as the top worry, accounting for 38% of responses. This was followed by healthcare and long-term care costs (20%), housing expenses (15%), financial debt (8%), children's marriage expenses (7%), insurance premiums (6%), and children's education expenses (6%).
For those with minor children at the time of retirement, the concern over children's education expenses (9%) was even higher than insurance premiums (8%) and financial debt (7%). The worry about children's marriage expenses (11%) also exceeded the overall average (7%).
Given the trend of later marriages and childbearing, these concerns are expected to become more pronounced in the future. Experts predict that instead of worrying about their children's weddings before retirement, people will increasingly worry about their children's employment.
Desired Monthly Income Post-Retirement
The survey also revealed that respondents believed they would need an average of 5.56 million won per month to maintain a suitable lifestyle after retirement. Women reported a higher desired monthly income (5.77 million won) compared to men (5.41 million won).
Additionally, the desired monthly income increased with age. While those in their 30s believed 5.17 million won would be sufficient, individuals in their 40s and 50s required 5.59 million won and 5.93 million won, respectively.
Furthermore, higher-income earners had higher expectations for their post-retirement income. Those earning 9 million won or more per month anticipated needing 7.46 million won monthly to maintain their lifestyle. This suggests a strong desire to maintain a similar standard of living after retirement.
Marital status and the presence of children also influenced the desired monthly income. Single or unmarried individuals reported a desired monthly income of 4.25 million won, while married individuals required 6.15 million won. Households with children needed an even higher monthly income of 6.36 million won, compared to those without children (5.29 million won).
Respondents with minor children at retirement age indicated that they would need an average of 8.34 million won per month to cover their children's education expenses and other related costs.
[Copyright (c) Global Economic Times. All Rights Reserved.]
