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MetLife survey shows generation squeezed out of job market
By Kim Tae-jong
Korean baby boomers are suffering from "retirement shock" because of a lack of preparation.
The generation, born between 1955 and 1963, is emerging as a huge burden on the nation's social safety net, according to a survey published by the MetLife Korea Foundation, Seoul National University (SNU) Institute of Aging and Gallup Korea, Thursday.
A total of 3,275 baby boomers were questioned for a research paper, titled "Changes and Continuities in Korean Baby Boomers' Lives, 2010-2012." They were among 4,668 Korean baby boomers, who were previously surveyed in the first study in 2010.
According to the follow-up survey, the quality of life for Korean baby boomers has deteriorated, as they face retirement with a majority unprepared for life after work.
Forty-five percent of retired baby boomers said their life was not as satisfying as it was before retirement, while only 12 percent said they were happier.
The survey also showed that one in three has a physical illness and 10 percent have more than two physical problems.
These conditions also have an impact on marriage, with about 40 percent saying they have seriously considered divorce.
Han Gyeong-hye, an SNU professor leading the study, said the Korean family culture should change to help baby boomers better cope with financial issues in their post-retirement life.
"The study showed that the past two years were not so easy for baby boomers here," she said during a news conference at the Westin Chosun Hotel in Seoul. "To help them overcome their financial problems, the Korean family culture that forces parents to support their children from education to marriage should change."
The report showed that baby boomers' poor preparation primarily resulted from excess spending on their children's education and marriages, although their income was stagnant.
It said spending on children increased by 27 percent, while medical expenses also jumped 11 percent. To cope with growing expenses, baby boomers tightened their purse strings for leisure and the portion of that in household spending dropped by 15 percent.
However, the number living with their children dropped to 17.2 percent from 31.7 percent.
Han also suggested baby boomers should be given "more options" in order to remain part of society after retirement, in which the market and the government should cooperate.
Other findings included that a large majority of baby boomers contributed to the National Pension Fund; but compared to 2010, the portion of people with private pensions dropped to 38 percent from 44 percent. The number of people with life insurance fell to 77 percent from 82 percent, while those with savings dropped from 69 percent to 64 percent. People with investments fell to 9 percent from 13 percent.
MetLife Korea also released another study on the pre-elderly generation, which refers to those born between 1948 and 1954.
Naming them the "Forgotten Generation," the study team said they have been neglected by society.
"They are sandwiched between baby boomers and the elderly," Han said. "Baby boomers have been spotlighted for the past few years while the elderly benefit from various welfare programs. But the forgotten generation is now at the crossroads without receiving any attention."
She also said that generation accounts for about 7 percent of the Korean population, and deserves discussion about their welfare.
Sandra Timmermann, the director of the MetLife Mature Market Institute, emphasized that the elderly can be valuable assets, given that Korea is fast becoming an aging society.
"We realized that many people think aging people are a burden for society but we're trying to change this view and to say such a population can be an asset. It's time for us to think outside the box and to really utilize this valuable human capital," she said.
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