Generational divide deepens as South Korea considers raising retirement age to 65

A deep generational divide is emerging in South Korea as the nation contemplates raising its legal retirement age from 60 to 65. The proposed change, aimed at addressing demographic shifts and an ageing workforce, is sparking contentious debate between younger and older South Koreans, particularly concerning its potential impact on productivity, employment opportunities, and workplace dynamics.

A recent survey conducted by the Korea Enterprises Federation (KEF) highlighted these diverging perspectives. A significant 59% of respondents aged 20-34 believe that extending the retirement age would be detrimental to work efficiency. In stark contrast, 62.6% of those aged 45-59, who possess at least 15 years of work experience, anticipate no such negative impact.

The KEF survey, which polled two separate groups of 500 individuals (unemployed individuals aged 20-34 and employed individuals aged 45-59 with over 15 years of experience), also revealed a stark disagreement on the impact on youth employment opportunities. Approximately 61.6% of younger respondents expressed concern that a higher retirement age would diminish job prospects for new entrants, while only 50.6% of older respondents shared this view.

This debate unfolds against a backdrop of a record number of South Koreans over 60 remaining in the workforce. Government data from June indicates that 60% of individuals in their sixties are currently employed, a figure remarkably close to the 60.3% employment rate for those in their 20s.

With most employment contracts typically concluding at age 60, the survey also explored preferred policy mechanisms for enabling continued employment beyond this age. Young respondents were almost equally split across three options: allowing firms discretion to retain workers past 60 (36.8%), formal termination at 60 followed by re-hiring (31.8%), and a legally mandated extension of the retirement age (31.4%).

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However, nearly half (46.8%) of older respondents favoured the third option – a government-mandated increase in the legal retirement age – an approach that garnered the least support from the younger demographic.

Despite these differing views on policy, a majority in both age groups expressed concerns about potential workplace conflicts arising from a larger presence of older workers. Issues cited included generational divides, differing work styles, challenges in adapting to new technology, and overall communication breakdowns. These concerns were more pronounced among younger respondents, with 80.8% anticipating problems, compared to 63.2% of older respondents.

Officials at the KEF emphasise the need for a cautious and deliberate approach to raising the retirement age. They warn that such a change could potentially alienate young people entering the labour market, who may perceive it as an impediment to their career opportunities, reported The Korea Herald.