Seoul: Lee Jung-kuen, the newly appointed chair of the Korean Senior Citizens Association, announced plans to propose that the South Korean government increase the official age at which people are considered senior citizens from 65 to 75. This proposed change aims to address the rapidly aging population and the associated economic challenges.
According to Yonhap News Agency, Lee emphasized the need to gradually raise the old-age threshold by one year annually over a decade, as South Korea’s senior population is projected to double from 10 million to 20 million by 2050. The current age standard was established in 1981 under the Welfare of Senior Citizens Act, when life expectancy was significantly lower at 66 years compared to 83 years today. The proportion of seniors in the total population has since increased from 4 percent to 19 percent.
In a related move, the Ministry of the Interior and Safety announced plans to extend the retirement age for janitors working for the ministry and its affiliated instituti
ons from 60 to between 63 and 65. This initiative may later be expanded to include other public officials. The adjustment aims to address the income gap faced by employees born in 1969 or later, who will begin receiving the national pension at 65 but currently retire at 60.
Statistics Korea recently reported that individuals aged 60 and older have become the largest age group in the nation’s total employee population, with 6.75 million seniors employed. This demographic shift highlights the need for policy adjustments as South Korea approaches super-aged society status next year, with people aged 65 and older comprising more than 20 percent of the total population.
However, extending the retirement age presents challenges, as companies typically oppose a uniform extension irrespective of employee competence and productivity. According to the Korea Enterprises Federation, the wage gap between long-term employees and new hires is the widest among 17 surveyed countries, driven by a seniority-based wage system
. This disparity contributes to financial burdens associated with extending retirement and raises concerns about its impact on younger workers entering the labor market.
Despite government efforts to create jobs for seniors, demand continues to outstrip supply. The Korea Labor Force Development Institute for the Aged reports that only 45.9 percent of the demand for senior jobs was met this year. Additionally, South Korea faces the highest senior poverty rate among OECD countries, underscoring the need for more comprehensive discussions and solutions to support the aging population and mitigate demographic challenges.
The proposal to raise the senior citizen age is not new, as it was previously suggested in 2015 but did not result in any changes. With the aging population issue becoming increasingly urgent, Lee’s proposal seeks to rekindle discussions on this critical topic.