Retirement Age Hike Sparks Job Cut Fears for Young Adults

Over nine in 10 South Koreans favor a phased extension of the legal retirement age from 60 to 65. A survey of 1,000 adults nationwide by the Korean Confederation of Trade Unions (KCTU) found that 88.3% held a positive view of raising the retirement age to 65.

The most preferred method for extending retirement age was 'phased extension' (46.3%). However, preferences differed by age group: those in their 40s (61.1%) favored mandatory legal amendments, while those in their 20s (44.0%) prioritized 'selective continued employment'.

Concerns about the extension impacting youth employment also varied by age. Those in their 20s (55.4%) and 30s (46.4%) expressed significant worry and advocated for 'prioritizing youth employment policies.' In contrast, those in their 40s (54.7%) and 50s (49.1%) were less concerned, citing differences in job roles. Nevertheless, there is a palpable worry among 20s and 30s that their job opportunities will shrink.

'Economic anxiety due to the pension payment gap' (69.0%) was the leading reason cited for supporting the retirement age extension. This stems from concerns about the income gap created between the current retirement age of 60 and the National Pension's earliest payout age of 65. Other reasons included 'leading a meaningful life due to increased lifespan' (50.7%) and 'shortage of skilled labor due to rapid population decline' (39.8%).