South Korea’s “kangaroo tribe” - unmarried men and women in their 30s and 40s who haven’t moved out of their parents’ homes - is causing concern among families. A growing number of parents are frustrated that their retirement plans have been derailed by their adult children, who still depend on them financially.
Research by NH Investment & Securities shows that approximately 649,000 adults in their 30s and 40s fell into the kangaroo category as of 2020. These adults range from those without jobs who depend financially on their parents to those with jobs who choose not to move out.
Myungha Hwang, a researcher at NH Investment & Securities, explains that Korean parents often put their children’s needs first, even if it means sacrificing their retirement plans. “But delaying a child’s financial independence and extending financial support increases the risk of parents facing bankruptcy later in life,” he warned.
A survey by SM C&C’s Tilian Pro revealed that 57% of 1011 respondents, who were parents with children, said they would provide financial support to their married children if necessary. Only 26% stated that they would not offer support. This indicates that parents are willing to support their children into adulthood, even if they are married and financially independent.
Furthermore, 65% of those surveyed have seen so-called kangaroos living with their parents, and 80% believe their children should achieve financial independence in their 20s and 30s. Regarding the earnings necessary for a child to move out and live independently, 46% of those surveyed responded that a monthly income of $2,256 (3 million won) would be sufficient.
These surveys indicate that many parents in Korea prioritize supporting their children over their retirement savings. The problem is that it is becoming difficult for adults in their 20s and 30s to achieve financial independence at a young age. Rising housing costs, combined with prolonged education and an increasingly competitive job market force young adults to enter the workforce later than expected. This trend is extending to people marrying later in life or remaining single.
Mr. and Mrs. A, who are in their 70s, live on a monthly pension of 2.2 million won. Their eldest son, nearing 40, has been unemployed for 20 years because he had trouble establishing relationships with other people. “When I was employed, my salary was enough for all of us, but retirement has reduced my income to a monthly pension of 2.2 million won,” said Mr. A. “We’re now facing a monthly deficit of 500,000 won, so I take money out of my retirement account to make up for the shortfall.”
Experts advise parents to set firmer boundaries with their children to prevent poverty in old age. “Kangaroos were rare back in the day when young adults were able to enter the workforce and live independently, but that is no longer the case,” said Jeon Young-soo, a professor at Hanyang University’s Graduate School of International Studies.
“While it is tempting to provide support for struggling children, the more parents offer help, the more dependent the children are likely to become, so parents should take a step back and let them find their way.”
