Only three out of 10 (31.3%) middle-aged South Koreans are sufficiently prepared for their later lives because most have to take out their retirement savings to pay for the education and weddings of their children.
According to a study by the Korea Insurance Development Institute (KIDI), currently employed Koreans in their 40s and 50s living in the capital and metropolitan areas on average get KRW94.66m ($86,250) in severance pay when they retire, reported Pulse News.
An average of KRW69.89m would be needed to cover costs for education of their offspring and KRW101.94m for marriage.
The findings are based on the KIDI's own survey and insurance statistics as well as an analysis of data from Statistics Korea and National Pension Service.
A retired couple would at least need an average of KRW2.27m ($2,068) a month, while a single retiree would need KRW1.3m. A desired amount would be KRW3.12m for a couple.
The KIDI noted that Koreans in their 40s and 50s account for 53.3% of the country’s total household assets, but mostly in properties that cannot aid in everyday income. More than half of the surveyed have public pension plans while only 7.2% on private pensions such as annuity insurance.
The KIDI urges the government to introduce more tax benefits to make private pension a more appealing option.