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The income and education levels of seniors in Korea are steadily rising. This means that 'wealthy and well-educated' seniors will become the mainstream in the super-aged society.

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According to the "2023 Survey on the Elderly" released by the Ministry of Health and Welfare, seniors' incomes are increasing rapidly. In 2023, the annual household income of seniors was 34.69 million KRW. Compared to 2008 (16.88 million KRW), when the first survey was conducted, it has more than doubled. It also increased by over 4 million KRW compared to the previous survey in 2020 (30.27 million KRW). Education levels have also improved. The proportion of seniors who graduated from junior college or higher rose from 5.9% in 2020 to 7.0% in 2023. The percentage who completed high school also increased from 28.4% to 31.2% during the same period.

The trend of increasing numbers of wealthy and educated seniors is expected to become even more pronounced from 2030. That's when the second baby boomer generation (born 1964-1974) will begin to join the senior population. The second baby boomers number 9.54 million, making them the largest single generation in Korea.

▲On December 23 last year, Kazunai Ono (90) was reading a newspaper at a "Small-scale Multifunctional Home" in Nagoya, Japan. The grandfather lives at home, pays various expenses, and visits this place. Photo by Yujin Park (Nagoya)

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According to the Bank of Korea's July 2023 report, "Economic Impact Assessment of the Second Baby Boomers Entering Retirement Age," the economic power of the second baby boomers far surpasses that of the first. When the first baby boomers were in their 50s, their average annual income was 55.64 million KRW. In contrast, the second baby boomers had an average annual income of 71.2 million KRW in their 50s. Lee Jaeho, head of the Bank of Korea's Research Coordination Team, explained, "The second baby boomers have higher savings and national pension contributions, so their spending power is relatively strong."

As the number of financially capable seniors increases, the direction of care services that help them continue living at home must also change. Until now, government support for senior care has focused on those with serious illnesses, dementia, or those who are low-income and qualify for long-term care. On the other hand, seniors with financial means have been excluded from care policies, and if they were not cared for by their children, they often had to leave home for facilities. To enable middle-class seniors to continue living at home, 'universal care' must be expanded and sustained. For this, it is essential to assign appropriate costs.

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Some local governments across the country are already making such attempts. Local governments act as a 'link' between seniors and care services. Lee Jinseon, head of the Integrated Care Team in Buk-gu, Gwangju, said, "Middle-class seniors may want to install a safety handle in the bathroom or receive home medical care, but there is nowhere suitable to inquire." She added, "Even if someone comes to the house, there are concerns about the quality of the service and whether the price is reasonable." She continued, "If city or county offices can find hospitals or interior companies that provide these services and just connect them to seniors, it would greatly help seniors continue living at home."

Buk-gu, Gwangju offers paid services. The amount paid varies according to financial status. For home medical visits, those just above the minimum income threshold pay 5% of the total cost, basic pension recipients pay 10%, and others pay 30%. With a per-visit fee of about 130,000 KRW, they pay approximately 6,500 KRW, 13,000 KRW, and 39,000 KRW, respectively.

There are also services such as customized home exercise (50,000 KRW per session), home bathing (84,000 KRW per session), and thorough house cleaning (once a year, up to 600,000 KRW). These are free for those just above the minimum income threshold and basic pension recipients, but seniors with financial means must pay the full amount. Lee said, "If it's free, everyone applies, so charging a fee helps identify the actual demand among seniors who really need the service." She added, "To accurately predict the budget and supply for care services, we need to charge for them."

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▲Last November, Sachiko Watanabe (90), who resides in Toyoakeshi, was assisted by helpers from the "Chatto Service" (a service that helps elderly people for 30 minutes at 250 yen) as she entered her home.

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Japan introduced paid senior care services much earlier than Korea. As the number of seniors surged, it became difficult to guarantee the quality of services, and a shortage of care workers led to this measure. In the past, seniors only had to pay 10% of the total cost for care services, regardless of their financial situation. However, since August 2015, the payment rate has varied according to income. If annual income, including pension, is over 3.4 million yen (about 31.5 million KRW), they pay 30%; if over 2.8 million yen (about 26 million KRW), they pay 20%; and if below that, they pay 10%.

Hong Seokcheol, professor of economics at Seoul National University and standing member of the Low Birth Rate and Aging Society Committee, said, "The new senior generation is financially strong, so policies are needed to encourage them to liquidate assets and spend on home care services." He added, "With long-term care insurance funds on the verge of depletion, increasing the personal share of service costs is inevitable."

He also said, "As the demand for services among the new senior generation diversifies, it is necessary to standardize care such as medical, meal, and household services, and to revitalize this industry in the private sector." He added, "Individuals should pay as much as they need and use services so they can live healthily at home."

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