Older adults attend a job fair at Mapo District Office in Seoul in this December 2023 photo. Yonhap

Koreans born in the 1960s have a unique life experience. Born into a country deeply impoverished by the Korean War, with a gross domestic product (GDP) per capita of only $79, they are now retiring in a developed nation where the figure has soared to $32,000.

They began their careers during the so-called "three lows" era — low oil prices, low interest rates and a low (weak) Korean won, which together, fueled sharp economic growth. Finding jobs was relatively easy, and year-on-year wage increases were substantial. At that time, 70 percent of the population believed they belonged to the middle class.

As a result, Korean society now views this generation as "rich" and "powerful," with them making up a significant amount of the population (8.6 million).

Entering the 2020s, individuals born in the 1960s are now approaching retirement.

Yet, for many, not working anymore seems like a distant dream.

"This generation is the last to take full responsibility for caring for their parents and the first that may not receive care from their children. As they embark on the second act of their lives, they face uncertainty about their lifespan, inadequate retirement savings, and unstable national pension finances," Kim Gyung-rok, executive adviser at Mirae Asset Financial Group, told The Korea Times in a recent one-on-one interview.

Executive Adviser at Mirae Asset Financial Group Kim Gyung-rok / Courtesy of Kim Gyung-rok

Kim, a seasoned expert in the retirement and pension sector, recently published a book titled "The 1960s Are Coming (direct translation)" and shared his analysis of their characteristics and expected futures.

Kim believes that polarization is a key term to describe the post-retirement experiences of Koreans born in the 1960s. They experienced distinct labor market divisions after enduring the Asian economic crisis in 1997 and witnessed a shift from traditional to advanced industrial sectors.

"Those born in the 1960s who have held permanent positions in the so-called 'good' labor market, such as in big corporations, are generally well-prepared for their post-retirement lives. They had a chance to save their stable income and contribute to the national pension for over 30 years," Kim said.

"However, others whose situation was not favorable, including the self-employed or those who have jumped between temporary jobs, are less prepared and face many struggles. If they retire at the age of 60, they have to survive almost 30 years without earned income, savings, or a sufficient pension. They have no choice but to undergo the reemployment process," Kim added.

In addition, the legal retirement age in Korea, 60, is five years earlier than in many advanced economies. Yet it is common for individuals to leave their main jobs as early as between the ages of 50 and 55. This trend is influenced by the large number of baby boomers in their 50s, coupled with the wage system, which is based on seniority rather than performance.

As a result, many retirees, still young and active, choose to reenter the job market. In 2023, the workforce expanded by 327,000 compared to the previous year, with those in their 60s accounting for 72 percent of this growth.

A cleaning worker removes posters from the wall at a subway station in Seoul, in this February 2023 photo. Newsis

The problem is that most of the available jobs for this demographic are temporary and unstable. Among those aged 55 to 64, temporary positions account for 34.4 percent of their employment, a stark contrast to just 8.6 percent in other Organisation for Economic Co-operation and Development countries. Among those over 65, temporary jobs comprise 70 percent of employment.

Given Korea's unprecedented rapid aging, Kim emphasizes the urgent need to structure the reemployment market.

"Currently, the employment market for those under 60 is overseen by the Ministry of Employment and Labor, while the Ministry of Health and Welfare is responsible for those over 60, focusing the job support in terms of welfare, such as providing part-time jobs in the public sector," Kim said.

Such an approach leads people in their 60s into a "grey zone," according to Kim.

Kim urged the government to establish systemized data of those in their 60s within the labor market and to offer them reemployment guidelines. He also emphasized the need to improve labor conditions.

"Most of the jobs they find offer no labor union representation or protection measures, leaving them with virtually no bargaining power. On average, their wages are 40 percent lower than in their previous jobs," Kim added.

Older adults rest at a children's playground in Seoul in this July 2023 photo. Korea Times file

Coexistence with younger generations key to sustainable society

"The aging population and low birthrate are affecting Korea at unprecedented levels, yet the full impact on economic growth has barely begun. At this moment, the most important goal for our society is to ensure sustainability," Kim said.

Kim referred to the example of Japan's Dankai Generation, born between 1947 and 1949, who experienced sharp economic growth. However, younger generations in Japan criticize them for burdening the next generation's future with government debt focused largely on their welfare. Due to their large numbers, they possess significant voting power, which complicates efforts by politicians to implement policies for the youth.

Born in the 1960s as well, Kim believes the key to a sustainable Korea lies in coexisting with the younger generation.

"Unlike older generations, Koreans born in the 1960s have the power to change societal dynamics and seek generational coexistence," he said.

"Yes, there is polarization. But we form a large cohort with shared social experiences. Among the baby boomers (born from 1955 to 1974), the 1960s generation is at the middle and the center of the society," he added, noting that the generation's higher educational attainment and experiences of democratization also contribute to its cohesion.

"We need to have the attitude of mutual concession and understanding in dealing with major social discussions, such as raising the retirement age for the elderly and pension reforms," Kim said. "Our future decision will serve as a critical litmus test for the super-aged Korea's sustainability."