Survey shows six out of 10 elderly are not economically independent

Six out of 10 elderly people are not economically independent, a survey showed Wednesday, in the latest sign that South Koreans are not well-prepared for their retirement.

The biennial survey by the National Pension Research Institute found that 59.3 percent of 4,105 households said they do not have the economic means to remain independent while 40.7 percent said they can support themselves.

The survey also showed that 53.2 percent of retirees said they wanted to receive financial support from their family members and relatives, reflecting a decades-long tradition in South Korea where extended families live under one roof and offer each other financial support.

Still, South Korea has seen a shift toward becoming a more individualistic, self-supporting society in recent years.

The survey showed that 63 percent said they are not financially prepared for retirement while 37 percent said they are prepared for their retirement and they favor the national pension as a way to cover expenditures for living after their retirement.

The survey also found that respondents said the minimum expenses for a retired couple is 1.3 million won ($1,200) a month.

The institute, affiliated with the National Pension Service, surveyed people in 4,105 households across the country last year as part of the government's effort to establish a database to prepare for an aging society.

South Korea is fast becoming an aged society, in which more than 14 percent of the population is 65 or older. Korea became an aging society in 2000, when the ratio exceeded 7 percent.

By 2050, 39 percent of the South Korean population is expected to be over 60, compared with the current level of 17 percent. (Yonhap news)