Appropriate Monthly Living Expenses for Couples After Retirement: 2.68 Million KRW

[Asia Economy Reporter Cho Hyun-ui] It has been found that middle-aged and elderly people aged 50 and over in Korea consider the appropriate living expenses after retirement to be 2.68 million KRW per month for couples. For individuals, the amount is 1.65 million KRW.

The National Pension Service Research Institute announced on the 29th the results of the 8th survey of the 'National Old-age Security Panel,' conducted on 4,531 households (7,343 individuals) nationwide with members aged 50 and over.

The survey results showed that middle-aged and elderly people aged 50 and over, assuming a healthy old age without any special illnesses, consider the 'appropriate old-age living expenses' for a standard lifestyle to be 2,678,000 KRW for couples and 1,645,000 KRW for individuals. Compared to the previous survey (7th survey in July 2017), the amount increased by 244,000 KRW for couples and 108,000 KRW for individuals.

The 'minimum old-age living expenses,' which refer to the cost required to maintain a minimum standard of living assuming a healthy old age, were found to be approximately 1,947,000 KRW for couples and 1,166,000 KRW for individuals.

Old-age living expenses varied somewhat depending on age, gender, and residential area. Those in their 50s required the highest level of living expenses, while those in their 80s required the lowest. By age group, the appropriate old-age living expenses for couples in their 50s were 2,961,000 KRW per month, but for those aged 80 and over, it was 2,135,000 KRW.

Men had slightly higher old-age living expenses than women. For men, the appropriate and minimum old-age living expenses for individuals were 1,698,000 KRW and 1,207,000 KRW, respectively, which were higher than those for women (1,607,000 KRW and 1,137,000 KRW).

Residents of Seoul required significantly higher old-age living expenses than those living in metropolitan cities or provinces. The appropriate old-age living expenses in Seoul reached 3,191,000 KRW for couples, while metropolitan cities (2,657,000 KRW) and provinces (2,523,000 KRW) were lower.

The institute advised, "Compared to the results of the 7th survey, the level of living expenses needed in old age increased by 5.0?6.0% for individuals and 8.0?8.6% for couples," and emphasized the need for "one national pension per person" preparation for couples' old-age planning. Considering that as of December last year, the average monthly pension amount for recipients with more than 20 years of National Pension subscription was 920,000 KRW, it explains that the National Pension can cover a significant portion of the minimum old-age living expenses for individuals.

However, even if both spouses are recipients, the appropriate old-age living expenses identified in this survey fall short, so the National Pension benefits alone may be somewhat insufficient to maintain a 'standard lifestyle,' that is, a comfortable life in old age. The institute explained, "If both spouses are recipients with more than 20 years of subscription, the National Pension benefits alone will cover the couple's minimum old-age living expenses, greatly reducing the burden of old-age preparation."

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