Young Koreans Shift to Stocks for Retirement as 20s-30s Participation Jumps Fivefold in 14 Years
Updated
Updated · 코리아타임스 · Sep 13
Young Koreans Shift to Stocks for Retirement as 20s-30s Participation Jumps Fivefold in 14 Years
1 articles · Updated · 코리아타임스 · Sep 13
Summary
12.8% of Koreans in their 20s and 13.4% in their 30s used stocks, bonds or other financial assets for retirement last year, up from 2.6% and 2.8% in 2011.
Concern over the national pension is driving the shift: the fund is seen at risk of depleting sooner as Korea ages, and its average monthly payout of 880,000 won trails the 1.54 million won estimated for basic single-person living costs.
The move accelerated around 2021 during a retail-investing boom and has stayed in double digits since, with younger savers increasingly using tax-advantaged pension savings accounts and IRPs, often through ETF investing.
Older Koreans also increased use of financial assets for retirement, but less sharply, with participation rising to 8% in their 40s, 6% in their 50s and 3.1% among those 60 and older.
National pension and traditional savings still dominate overall retirement planning: 71% of adults cited the public pension last year, while 44.1% relied on bank deposits, savings plans or savings-type insurance.