Banks rehire retired employees to tap veteran expertise in wealth management

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Commercial lenders are increasingly rehiring retirees to fill key roles, seeking to draw on their decades of experience to enhance service quality, strengthen risk management and bolster customer trust, market watchers said Tuesday.

The move is driven by growing demand for experienced professionals in asset management, loan screening and fraud prevention, reflecting the financial sector’s approach to retaining proven talent beyond the statutory retirement age.

Between 2021 and October this year, Korea’s four leading banks — KB Kookmin, Shinhan, Hana and Woori — rehired more than 5,000 retired employees.

Many of them work in asset management, compliance, loan review and antifraud departments, where human expertise remains more critical than artificial intelligence technologies.

Hana Bank said rehiring retired employees came from strong client demand for seasoned professionals with firsthand knowledge and expertise in asset management.

“Many customers in their 50s and 60s are seeking consultations for postretirement planning,” a Hana official said.

Their assets — including financial products and real estate — along with income from pensions, interest, stocks, dividends and rent, can all be considered when setting up an optimal portfolio. The purpose is to maximize profit while minimizing tax burdens.

“Customers are looking for seasoned veterans who can plan postretirement with inheritance and tax issues in mind. This is where the senior former bank workers’ experience comes in to best help them with tailored services," the official said.

Shinhan has rehired more than 1,500 senior employees since 2021, particularly in departments handling retirement pensions and small office/home office borrowers.

The bank says rehired veterans have boosted overall customer satisfaction, noting that demand for financial consulting among customers in their 50s is growing — a need that these rehired employees are well equipped to meet.

KB Kookmin’s rehired employees work in compliance, internal control and anti–money laundering departments.

“These employees are already well-versed with our systems, regulations and corporate culture,” a KB official said. “They do not need training, meaning no additional human resources training costs for the firm. They can also share their experiences with younger junior workers, while learning from them about digital financial systems.”

The trend coincides with Korea’s demographic challenge, as the country has the world’s fastest-aging population.

Nearly one in five Koreans is now 65 or older, while the working-age population (ages 15 to 64) is shrinking sharply.

A central bank report released in April called for new contracts to be signed for workers aged 60 until they reach the pension-eligible age of 65.

It said at the time that extending the retirement age without reforming the seniority-based pay system would exacerbate youth unemployment and deepen labor market polarization.