Koreans need $2,830 a month after retirement: study

KB Financial Group Chairman Yang Jong-hee / Newsis

At least 3.7 million won ($2,830) in monthly income is needed after retirement for a well-maintained quality of life, according to a study, Sunday.

According to a poll of 3,000 men and women aged 20 to 79 conducted between Jan. 3 and 27, conducted by a think tank under KB Financial Group, 3.7 million won is needed every month for people aged 65 and older to spend on leisure activities, travel and pocket money as well as expenses for grandchildren. The minimum cost of living for food, clothes and housing averaged 2.5 million won.

However, the expected monthly income at retirement age averaged 2.1 million won, only 60 percent of the required amount.

A total of 2,477 people said they would want to retire at 65. However, the retirement age of 409 respondents averaged 55.

Fifty-two percent said they are unprepared for retirement.

Two-thirds of respondents had favorable views on “aging in place,” which is defined by the U.S. Centers for Disease Control and Prevention as “the ability to live in one’s own home and community safely, independently, and comfortably, regardless of age, income, or ability level.”

Having to care for their sick spouse or family members at home was the biggest concern according to 32.5 percent of respondents.

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On a scale of 1 to 7, with 1 being not prepared at all and 7 being very well prepared, married couples with children scored 3.89 points, higher than the 3.48 points scored by married couples without children.

Married couples without children had an average of 3.1 pensions, greater than 2.3 held by married couples with children.