Koreans unprepared for retired life
Korean baby boomers are set to retire in the near future, but they are unprepared for life after work, a leading insurance company said Thursday.
According to a report by Samsung Life Insurance, the retirement preparedness index for average Koreans marked 58.3 out of 100.
Samsung named the index RAINBOW using the initials of its seven categories of recreation, activities, interaction, nest, ballast, opulence and wellness. The company developed the index based on surveys, it conducted on 2,000 adults in Seoul and five metropolitan areas aged between 25 and 75. A research team of Seoul National University joined in the project.
The index showed that Koreans are vulnerable to change after they retire. By category, they are particularly weak in the area of leisure activities and financial preparation, scoring 51.1 and 51.5 respectively.
The respondents, however, said they are prepared relatively better in wellness, nest and interaction, ranked 63.9, 63.8 and 63.7 respectively.
The average Korean’s index was lower than that for the top 10 percent, whose number reached 77.1. The upper 10 percent said that they are most prepared in the seven fields. They also recognized the importance of the non-financial sectors.
In particular, the upper class said they are satisfied with their activities, and took part in social activities more than once in a week. In the finance sector, they spare more than 500,000 won monthly for living expenses after retirement. Thanks to their efforts, the index of the top 10 percent marked 71.3 in activities and 81.9 in finance.
In contrast, people aged 60 or more are ill prepared as their score was 56. People who were born between 1954 and 1957 also showed poor results at 56.7.
Experts say the government and society need to create more jobs for senior citizens to be ready for an aging society. “It is urgent to find solutions for jobs, social roles and income guarantee for retirees,” said the report.
It also said that Korea needs to model itself after the United States. In America, it is relatively easy for seniors to find work if they undergo a training period.