Raising the Elderly Age from 65 to 70... Complaints about Free Subway Rides

Raising the Age Threshold for Senior Citizen Benefits to 65... Various Benefits Also Being Reassessed

Elderly people gathered in small groups chatting at Jongmyo Park in Seoul. The photo was taken in 2011, showing the scene before the impact of the COVID-19 pandemic.
[Image source=Yonhap News]

[Asia Economy Reporter Han Seung-gon] As the government announced it will begin discussions to raise the age threshold for the senior citizen preferential treatment system, currently set at 65 years old, some young people are expressing support. In particular, among office workers who commute by subway, there are complaints about free rides for the elderly. Since seniors aged 65 and over can use the subway for free, it is argued that the crowded commuting hours become even more difficult due to the influx of elderly passengers.

On the 27th, at the Government Complex Seoul, Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki chaired the Korean New Deal-related Ministers' Meeting and the Central Disaster and Safety Countermeasure Headquarters meeting, where they disclosed the results of discussions by the 2nd Population Policy Task Force (TF) covering income security, jobs, medical security, elderly poverty rates, and retirement age.

The government plans to overhaul the entire senior preferential treatment system to respond to the increasing elderly population. Due to increased average life expectancy, social perceptions of the elderly age have changed, necessitating adjustments to age criteria in elderly welfare policies. This is interpreted as a move to raise the current senior preferential age threshold of 65 years.

Subway Line 1 [Image source=Yonhap News]

◆ Will adjusting the senior age criteria reduce the rate of free rides for the elderly?

According to a 2017 survey on the elderly, 59.4% of seniors considered the age range of 70-74 as the threshold for being elderly. Those who considered 75-79 were 14.8%, and those below 69 were 13.8%. This has led to speculation that the senior preferential age might be raised to around 70.

The atmosphere among young people is welcoming toward raising the senior age criteria from 65 to 70 or so. Some believe that this would reduce the density of elderly passengers during subway commutes.

Kim, a man in his 40s who commutes on Seoul Subway Line 1, said, "Since seniors aged 65 and over can ride the subway for free, the trains are too crowded." He added, "I hope adjusting the senior age criteria will improve this situation."

Another office worker in his 30s, Lee, said, "This might be seen as ageist, but that is not the intention. There are just too many seniors aged 65 and over, and with rapid aging, the term 'elderly' seems less fitting." He continued, "I wish the times when seniors crowd the subway could be adjusted."

The free ride system for seniors was first implemented in May 1980. At that time, it offered a 50% discount for seniors aged 70 and over, and in February 1982, the eligible age was lowered to 65.

In June 1984, Seoul Metro expanded the system to allow 100% free rides on subway lines 1 to 4. In 1991, Seoul Metropolitan Rapid Transit Corporation extended free rides to lines 5 to 8, and by 1997, the free ride coverage expanded beyond Seoul to include Incheon and other areas.

At that time, seniors aged 65 and over made up only 4% of the total population, but now they account for 14%, entering the UN classification of an aged society. In eight years, by 2026, it is expected to exceed 21%, entering a super-aged society.

[Image source=Yonhap News]

◆ Rapid increase in free ride rates... losses also mounting

As proposals to raise the senior age criteria and the free ride system intersect, some citizens have voiced complaints. According to the 'Seoul City Budget and Finance Analysis' No. 21 published by the City Council in April 2017, the number of elderly free riders and the losses from free rides have surged due to the aging trend.

The City Council stated that cumulative losses from free rides on Seoul subways could reach 14 trillion won by 2040, urging cost-sharing between the central government and local governments.

According to the City Council, if the current system of free rides for all seniors aged 65 and over continues, losses from free rides are expected to increase from 296.8 billion won this year to 364.4 billion won in 2020, 638.7 billion won in 2030, and 988.7 billion won in 2040. The cumulative loss by 2040 is projected to reach 14.6605 trillion won, increasing Seoul's financial burden.

Additionally, according to Seoul City, in 2018, losses from free riders on six urban rail lines nationwide amounted to 617.5 billion won, accounting for 58% of the total net loss (1.0619 trillion won). Amid this, rapid aging has increased the proportion of elderly free riders from 15.8% in 2013 to 17.9% (453 million rides) in the same year.

Meanwhile, the government plans to form a TF soon to gather opinions from various sectors and prepare improvement measures for the senior preferential system. Kim Yong-beom, 1st Vice Minister of Strategy and Finance, said at the Economic Central Disaster and Safety Countermeasure Headquarters briefing on the 27th, "The TF will be formed in the second half of the year, centered on the Ministry of Health and Welfare, Ministry of Land, Infrastructure and Transport, and local governments."

He added, "Currently, seniors aged 65 and over receive fare discounts under the senior preferential system according to the Elderly Welfare Act when using certain facilities such as railways. Going forward, we will comprehensively review not only the current discount rates and applicable ages but also various factors. After collecting opinions from all sectors, we will discuss reasonable reform measures."

This content was produced with the assistance of AI translation services.