The sharp increase in the number of employed people aged 65 and older in South Korea is primarily due to the country’s aging population. Elderly individuals now account for nearly 20% of the total population. Additionally, longer life expectancies have extended retirement years, but many seniors are financially unprepared, making it necessary for them to continue working.

“I was a full-time homemaker until I turned 60, but after raising my children, I realized I wasn’t ready for retirement,” said Lee, a 68-year-old caregiver in Bucheon. “Unless I need care myself, I plan to keep working.”

Middle-aged visitors wait for consultations at the Seoul Western Employment Welfare Plus Center in Mapo District, Seoul, on Aug. 26, 2024./News1

In South Korea, where the retirement age is 60, retirees face a gap of at least three years without income before pension benefits begin. According to Statistics Korea, the average monthly pension for those aged 65 and older was 650,000 won ($490) in 2022—far short of covering basic living expenses. Pensions typically start at age 63 for those born between 1961 and 1964, but for those born in 1969 or later, they don’t start until age 65, extending the income gap to five years. Without other employment, retirees must survive these years with no salary.

Even when pensions are received, the payments are often too small to cover basic needs, forcing many elderly to continue working. As a result, South Korea has one of the highest elderly poverty rates in the world. The elderly poverty rate, which measures the percentage of those 66 and older whose income is less than half the median, stood at 40.4% in 2020—the highest among OECD countries.

The number of employed seniors is rising faster than among younger age groups. In August, the total number of employed people grew by 123,000 compared to the previous year. The largest increase came from those aged 60 and older, who saw employment rise by 231,000—more than double the increase in the 30s age group (99,000). By contrast, employment among people in their 20s and 40s dropped by 124,000 and 68,000, respectively.

South Korea’s “senior employment boom” stands out even among developed countries. In 2022, the labor force participation rate for those aged 65 and older reached 37.3%, the highest among OECD nations. Iceland followed with 32.6%, while Japan and New Zealand had rates of 25.6% and 25.2%, respectively. Last month, South Korea’s rate climbed to 40%, meaning that 4 out of 10 seniors were either working or actively looking for a job.

Improved health among people in their 60s and 70s, thanks to advancements in medical technology, is also driving more elderly people to work—not just for financial reasons but to find fulfillment. Kim, a 63-year-old former teacher, now works as a temporary instructor at another school. “After working my whole life, it was hard to suddenly stop,” Kim said. “I can earn some extra pocket money, and I plan to keep working as long as I’m able.”

A 2022 survey by Statistics Korea found that working seniors like Kim reported lower stress levels and a greater sense of purpose. Among seniors aged 65 and older, 34.4% of those who were employed said they felt stress in daily life, compared to 36.4% of those who weren’t working.

Experts say government policies on senior employment need to adapt to the aging labor market. They argue that low-wage, menial jobs like picking up trash or pulling weeds in parks provide little benefit to seniors and are inefficient for the economy.

“We need a system that matches seniors with companies where they can utilize the expertise they’ve built over 20 to 30 years,” said Lee Seung-hee, a researcher at the Korea Development Institute. “To do this, the government should expand retraining and job programs for retirees.”