Assessing Financial Preparedness in Old Age in Asia: Evidence from the Republic of Korea

Sang-Hyop Lee, Hyun Kyung Kim, Huixia Wang and Donghyun Park
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Sang-Hyop Lee: University of Hawai`i at Mānoa
Hyun Kyung Kim: Chungbuk National University
Huixia Wang: Hunan University
Donghyun Park: The South East Asian Central Banks (SEACEN) Research and Training Centre

No 863, ADB Economics Working Paper Series from Asian Development Bank

Abstract: We estimate expected financial resources in old age—including public transfers, family transfers, accumulated assets, and post-retirement labor income—and compare them with target consumption needs. The sample is divided into a reference group (individuals at or beyond retirement age) and a target group (pre-retirement individuals). Two retirement scenarios are considered: (i) a statutory retirement age of 62 for both men and women, and (ii) effective retirement ages of 66 for men and 65 for women. Results are presented by gender and place of residence. We find substantial heterogeneity in financial preparedness, with women facing significantly larger shortfalls than men. Continued work and family transfers remain critical pillars of old-age support, highlighting the transitional nature of the Republic of Korea’s welfare regime.

Keywords: population aging; financial preparedness; retirement; pensions; Republic of Korea (search for similar items in EconPapers)
JEL-codes: D91 H55 J14 J26 (search for similar items in EconPapers)
Pages: 29
Date: 2026-09-23
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Persistent link: https://EconPapers.repec.org/RePEc:ris:adbewp:023633

DOI: 10.22617/WPS260410-2

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