Longer Lifespan, Longer Workdays

In September 2025, the Ministry of Employment and Labor (MOEL) announced its administrative goals to gradually extend the legal retirement age. As Korea has already become a super-aged society, this goal aligns with the country’s current status. However, concerns remain that additional social issues may follow. In this sense, the Sungkyun Times (SKT) explores the reasons behind the discussion on retirement age extension, the arguments for and against it, and how Korea should prepare for the future.

Suits in Your Sixties?

-Gears That Do Not Click

The term super-aged society refers to a country where more than 20% of its population is over the age of 65. According to Korea TV, Korea entered this stage in December 2024. While the proportion of elderly citizens is expected to continue rising, the fertility rate remains extremely low. The Korean Statistical Information Service reported that the fertility rate in Korea in 2024 was 0.748, suggesting that the Korean population is likely to decline over time. As birth rates fall and the elderly population grows, the workforce will eventually shrink. Apart from this issue, Korea is currently also facing an administrative challenge — a considerable gap between the current legal retirement age and the age at which citizens first start receiving the national pension. Under current laws, the legal retirement age is 60, while citizens are eligible to receive their national pension from the age of 65. This interval means many Korean seniors must face five years without any consistent income. To bring a halt to this problem, numerous solutions have been proposed and evaluated.

-Engine Ready for Departure

In this context, the extension of the legal retirement age is not an unfamiliar topic. In August 2024, Park Hong-bae of the Democratic Party of Korea proposed a bill regarding the gradual extension of the legal retirement age. Later, in November 2024, both the Federation of Korean Trade Unions and the Korean Confederation of Trade Unions requested that the retirement age extension be designated as a major legislative task for the National Assembly of Korea. The two associations also proposed a 4.5-day workweek, with the retirement age extension serving as the foundation for further improvement. Finally, with all these efforts, the extension of the legal retirement age was included in the MOEL’s administrative goals, announced in September 2025. Considering that administrative goals serve as a roadmap for what the Korean government aims to achieve during its term, this indicates that the current administration is committed to making significant progress on the issue.

-Intense Disputations

-For: Providing Longevity

Those arguing for the extension emphasize that allowing employees to work longer could help reduce the risk of old-age poverty, which is becoming increasingly serious in Korea. According to the Asia Business Daily, the poverty rate among the Korean elderly is 39.8%, which is the highest among all Organization for Economic Cooperation and Development (OECD) countries, implying that the Korean elderly are having a hard time making a living after retirement. The primary source of income for the elderly is the national pension, but the problem is that it is often difficult for one to live comfortably solely on the pension. Research conducted by the National Health Insurance Service shows that the average monthly expense of a retired individual is \1.65 million, while the monthly pension payment is only \670 thousand. In this context, the opportunity to work for an additional five years would make it much easier for older citizens to prepare for their post-retirement lives. Furthermore, companies can benefit from retaining experienced individuals for longer periods. In a survey conducted by the recruitment website Saramin, 79.8% of responding companies expressed a positive outlook on extending the retirement age. Among those companies, 57.9% cited the ability to utilize experienced employees’ know-how as their primary reason. To sum up, employees support extending the retirement age to better prepare for their life after retirement, while companies value the retention of skilled and experienced workers.

-Against: “Absolute Robbery”

On the other hand, opponents have raised two main concerns: fewer job opportunities for younger workers and the economic burden on companies. For one, the extension of the retirement age may limit the hiring of college graduates, as senior employees remain in their positions, and companies hesitate to recruit new employees. The Korean Enterprises Federation, a leading business advocacy group, has already voiced concerns about the possibility of a decrease in job opportunities for young people. Due to the current economic downturn, companies are already reluctant to hire, and extending the retirement age would exacerbate this tendency. Additionally, the high salaries of senior employees can be a burden for companies, as wages generally increase with tenure. According to the Federation of Korean Industries, if the legal retirement age were extended to 65, the financial cost of retaining senior employees would amount to \3.1 trillion in the first year alone, rising to \30.2 trillion by the fifth year. Considering youth unemployment and challenges of corporate management, the extension may not be universally welcomed.

Hand in Hand We Start to Develop

For a smooth implementation of the extended retirement age, Korea must establish a foundation of social consensus. First, establishing a consultative body among employees, companies, and the government is essential to reaching an agreement. If any related party faces difficulties adapting to the change, the policy cannot be effectively implemented, which makes it crucial to ensure that all parties have an opportunity to share their opinions. In an interview with Seoul Shinmun, Choe Yon-hyok, a Professor of Political Science at Linnaeus University, explained that Sweden has created a special committee to meet with stakeholders across the nation and conducted a nationwide survey before proposing the Employment Protection Act in 2023, which extended the retirement age. Following Sweden’s precedent, Korea should go through extensive debate about the extension to achieve social consensus and thus minimize social friction. In addition, the government should consider providing subsidies to companies to offset the high wages of senior employees, as financial burdens must be taken into account. A positive example of this solution can be found in Japan, which has already extended its legal retirement age to 65 in 1994. According to a report written by the National Assembly Research Service, the Japanese government provided incentives for companies to maintain the employment of seniors. With government support, companies made efforts to revise their wage systems, which helped them adapt to the newly extended retirement age. Ultimately, economic growth itself is essential. In an interview with the SKT, Yoon Jung-sun, an employee nearing retirement, claimed that if the extension of the retirement age is implemented, the government should also start preparing a long-term plan to boost the economy. She asserted, “With rapid progress in artificial intelligence, job opportunities will decline over time, making it harder for college graduates to find employment. The retirement of current senior employees may not necessarily create new positions for college graduates.” She highlighted that the government should put effort into improving the economy itself to create more job opportunities, thus enabling both seniors and young people to be employed. With these measures, Korea would be able to create a basis for a successful extension of the legal retirement age.

Extending the retirement age is not merely a matter of working five more years, and it is no exaggeration to say that Korea’s future depends on this discussion. It is not certain what this extension will bring to Korean society, but future offices are likely to undergo substantial changes. Kingos, brace yourselves for impact on the job market and remember the famous saying, “Chance favors the prepared mind.”