Home > Business > Economy

Korea's older people more likely to be working than in other major economies

Published: 26 Nov. 2025, 13:28 Updated: 26 Nov. 2025, 16:56

Job-seekers look at listings for workers aged 60 or over at a job fair in Suwon, Gyeonggi, on March 28. [NEWS1]

Korea’s older people remain the most likely among major economies to hold a job, reflecting how early retirement and modest pension benefits keep many people aged 65 or older in the work force.

Data from the National Data Office shows that people aged 65 or older accounted for 20.3 percent of the population this year, putting Korea firmly in the ranks of super-aged societies. The share is projected to climb past 40 percent by 2050.

The average retirement age continues to fall, despite calls to make better use of older workers.

Koreans left their main jobs at 52.9 on average this year, well before the statutory retirement age of 60. Many still want to stay employed, with the preferred working age extending to 73.4.

A recently published report by Oh Yu-jin, a research fellow at the National Pension Research Institute, examined why older people continue to seek work even after becoming eligible for the national pension.

The report shows that Korea’s employment rate for people 65 and older reached 37.3 percent in 2023, the highest among Organisation for Economic Cooperation and Development (OECD) members. The OECD average was 13.6 percent, while Japan, another rapidly aging country, recorded 25.3 percent.

Korean older people said they work mainly to cover living costs, with 54.4 percent citing financial need, while 36.1 percent said they enjoy working, and 4.0 percent pointed to avoiding boredom.

"The fact that the need to cover living costs accounts for the largest share indicates that pension income alone does not provide adequate support in old age," Oh said.

The National Pension Service logo is seen at the agency's office in Seodaemun District, western Seoul, on Nov. 3. [NEWS1]

The average national pension payout last year was about 660,000 won ($452), which is less than half the minimum monthly living cost for a single household of 1.34 million won.

Pension eligibility is also shifting later. People born between 1961 and 1964 begin receiving payments at 63. Those born in 1969 or later start at 65.

While retirees in many Western advanced economies often stop working once pension payments begin, many older Koreans return to the job market.

Oh noted that earlier overseas studies found public pensions tend to reduce work among older people and encourage earlier retirement, but said Korean research shows little evidence that the national pension reduces labor supply. The payout, Oh said, is too low to influence retirement decisions meaningfully.

The report gave an upbeat assessment of the pension deferment system, which increases benefits by 7.2 percent for each year recipients delay their first payment. The system has encouraged more older Koreans to remain in the work force while they work toward a higher future pension, the report said.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM CHUL-WOONG [[email protected]]