[News Terms] The 'New Senior' Baby Boomer Generation Is Coming

The 'Shin-nonyeon (New Elderly)' generation refers to a group centered around the baby boom generation born after the Korean War (1955?1963), characterized by distinct traits that differentiate them from the traditional elderly generation.

Since the 2000s, research on the quality of life and leisure culture of the elderly has been steadily conducted in Western countries such as the United States. As the increase in the elderly population and extended life expectancy emerged as core issues in aging societies, policy development for this demographic became an important task. In Korea, discussions on the direction of elderly issues and the formation of Shin-nonyeon culture began to gain momentum after the enactment of the Framework Act on Low Birth Rate and Aging Society in 2005.

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The Shin-nonyeon generation differs from the previous elderly generation in terms of education, era, and social background. The earlier elderly generation had fewer opportunities for higher education and mainly consisted of low-education and low-income groups due to harsh living conditions. Having lived through the Japanese colonial period and post-war recovery, they exhibited collectivist traits with individuals being subdued.

In contrast, the baby boom generation is known as the so-called 'sandwich generation.' Based on a sense of responsibility inherited from previous generations, they endure sacrifices for both parental care and child-rearing, while also showing a relatively complex interest in their own lives.

Growing up as key contributors to Korea’s economic growth in better educational opportunities and environments, they prioritized work and accumulated assets. According to a paper by the Korean Regional Sociology Association titled 'A Comparative Study of Perceptions between the Elderly Generation and the Shin-nonyeon Generation for Successful Aging,' there was a clear difference in educational attainment between the Shin-nonyeon and the elderly generations. Survey results showed that the Shin-nonyeon generation had higher responses for high school graduates (43.1%) and college graduates (28.5%), whereas the elderly generation had higher responses for elementary school graduates (34.9%) and those with no formal education (26.2%).

There was also a significant difference in monthly household income. Among the Shin-nonyeon generation, the income bracket of 1.51 to 2.5 million KRW (31%) was the highest. In contrast, more than half of the elderly generation respondents (64.7%) fell into the income bracket of 500,000 KRW or less. The Shin-nonyeon generation has a strong sense of economic and cultural independence based on the assets they have accumulated. They also show high interest in health management and have low expectations for financial support from their children in old age. However, as their life cycle lengthens and old age extends, the Shin-nonyeon generation finds it difficult to expect additional income sources beyond pensions, making it hard to say that their post-retirement life is fully prepared.

Kim Ji-eun, Director of the Administrative Statistics Division at the National Statistical Office, is explaining the '2022 Pension Statistics Results' on the morning of August 22 at the Government Sejong Complex.
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Accordingly, the Shin-nonyeon generation has begun to enter the employment front. Economic activities among the Shin-nonyeon generation are becoming more active in line with national policies such as expanding jobs for the elderly. According to the Statistics Korea’s Economically Active Population Survey, the number of employed persons aged 60 and over reached 6.22 million in 2023, an increase of 360,000 compared to 2022. In the September labor force survey, employed persons aged 60 and over ranked first among all age groups. Korea’s elderly employment rate is also among the highest in the OECD. As of 2022, Korea ranked first among 38 OECD member countries with an employment rate of 36.2% for those aged 65 and over, far surpassing second-place Japan at 25.1%.

However, Korea’s elderly poverty rate is also among the highest in the OECD. According to the OECD’s 'Pensions at a Glance 2023' report, as of 2020, Korea’s income poverty rate for the population aged 66 and over (40.4%) was nearly three times higher than the OECD member country average (14.2%). Although the elderly poverty rate is expected to gradually decline, it is projected to remain around 26% even in 2070, when those born in 2015 reach old age.

The government is rapidly introducing various welfare and employment policies. Currently, it is pushing to increase the basic pension paid to the bottom 70% income elderly aged 65 and over from 300,000 KRW to 400,000 KRW per month. To meet the job demand of the highly educated Shin-nonyeon generation, the proportion of social service-type and private sector jobs requiring high wages and expertise will also be expanded from the current 376,000 to 406,000 next year.

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