Lee Joong-keun, new chairman of the Korean Senior Citizens Association, speaks during his inauguration ceremony at the Korea Chamber of Commerce and Industry in Seoul, Monday. Yonhap
The new chairman of the Korean Senior Citizens Association proposed Monday that the minimum age for eligibility for senior welfare benefits be raised from 65 to 75 in light of the rapidly aging population.
This proposal comes amid years of debate over whether the nation should raise the age that defines the elderly from the current 65. This age serves as the criterion for determining retirement at companies and for the government's provision of various welfare programs, as the elderly population continues to grow rapidly.
At his inaugural ceremony in Seoul, Lee Joong-keun, 83, urged policymakers to revise the definition of elderly and gradually raise the eligibility age for social programs, including state pensions. He emphasized that the current system is unsustainable for supporting the increasing number of older citizens.
“The number of elderly citizens is about 10 million now. But it will increase to 20 million by 2050. Excluding the 10 million minors, the remaining 2 million (working-age) people will have to support the elderly,” Lee said at the event at the Korea Chamber of Commerce and Industry. “To maintain the number of senior citizens at around 12 million, I would propose to the government the idea of raising the (legal elderly) age by one every year over the next 10 years.”
As part of efforts to maintain the country's productivity and sustain its welfare system, Lee, who is also the founder and chairman of property developer Booyoung Group, suggested raising the legal retirement age to 75 and providing support to companies that would enable older people to continue working.
For example, a man who retires at 65 should be allowed to work during the first year after retirement at 40 percent of the peak salary he used to receive, and at 20 percent of that salary at the age of 75, Lee said.
“I hope people aged between 65 and 75 will serve as a social buffer before reaching the age defined as elderly,” he said. “The government is expected to spend 30 to 40 trillion won ($22 billion to $30 billion) on senior welfare. If this money is used to support them directly through work programs, it could cover costs over the next 10 years. If I can guarantee 10 more years of work for our (Booyoung) employees, I would also participate in hiring workers beyond the retirement age.”
Social perceptions of what age is considered "too old" have evolved in recent decades. In 2024, a baby born in Korea is expected to live for more than 84 years. However, the legal system remains rooted in outdated views, he said.
“Few of those aged 65 would call themselves as elderly citizens,” Lee said. “They would say, ‘What should we do after retiring way too early?' ... My point is to let them continue to work and be productive if they wish.”
His remarks came as Korea is forecast to become a super-aged society, where more than 20 percent of the population are 65 years or older. With its total fertility rate stuck at 0.7, the world's lowest level, the country is expected to feel the impact of the dramatic demographic change in the coming decades.
The country's pension fund, which is expected to be depleted by 2055, is one of many areas that remain vulnerable to that risk.