Retirees’ financial market to triple over next decade

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Retirees’ financial market to triple over next decade

Korea’s financial market for people preparing for life after retirement is expected to more than triple over the next decade amid rising demand from its fast-aging population, a report showed yesterday.

The financial market for private pensions, retirement pensions and other private-sector financial products designed to support retirees will grow to 981 trillion won ($905.8 billion) in 2020 from the 302 trillion won estimated for this year, according to the report by Woori Investment & Securities.

The country’s fast-aging population will drive the market growth. The number of those aged 65 or older totaled 5.45 million as of 2010 but is forecast to surge to 8.08 million in 2010, according to an earlier report by Statistics Korea.

Korea is fast becoming an aged society, in which more than 14 percent of the population is 65 or older. Korea became an aging society in 2000, when the ratio exceeded 7 percent.

Private pension products will likely account for the largest share. The market for private pensions is expected to grow from 187 trillion won in 2011 to 583 trillion won in 2020, the report showed.

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