8 out of 10 companies support raising retirement age: survey

Eight out of 10 businesses support a proposal to raise the mandatory retirement age for employees, currently set at 60, according to a survey released Monday.

The survey, conducted by online recruiter Saramin among 461 companies, also found that the preferred new retirement age averages 65.7 years, with more than half of respondents, 57.9 percent, choosing 65 as the ideal age.

Support for allowing older workers to stay in the workforce longer is gaining momentum in South Korea, as the country is projected to become a "super-aged society" next year, with over 20 percent of the population aged 65 or older. On Monday, the Ministry of Interior and Safety confirmed a recent change in its internal regulations governing nearly 2,300 employees under its jurisdiction and affiliated institutions to allow continued employment until the age of 65.

The Saramin survey showed that a majority of the companies, 57.9 percent, cited the benefits of retaining a skilled workforce as their reason for supporting the extension. With multiple answers allowed, the second most popular reason, chosen by nearly 40 percent, was the stability that continued employment would provide for senior citizens.

Additionally, 52.9 percent of the respondent companies said they were open to hiring “young senior” workers, or those in their 50s and 60s.

On the other hand, corporations opposed to raising the retirement age expressed concerns that it would negatively impact the recruitment of younger staff and disrupt company culture.