"Adequate Retirement Living Expenses: 3.5 Million Won Per Month… Expecting a Shortfall of 1.2 Million Won"

KB Financial Survey of 3,000 People… Desired Retirement Age is 65, But Actual Retirement is at 56

Only 33% "Willing to Utilize Home Pension for Retirement Living Funds"

"Adequate Retirement Living Expenses: 3.5 Million Won Per Month… Expecting a Shortfall of 1.2 Million Won" (Hanam=Yonhap News) Reporter Shin Hyun-woo. 2025.6.11 nowwego@yna.co.kr

South Koreans believe they need approximately 3.5 million won per month for living expenses in retirement, but surveys indicate that they are only confident in securing about 66% of this amount.

KB Financial Group's Research Institute released the "2025 KB Golden Life Report" on the 28th, which contains these findings. The survey was conducted from May 30th to June 18th of this year, with 3,000 men and women aged 25-74 nationwide participating.

According to the report, the minimum living expenses, considering only the basic necessities of food, clothing, and shelter in retirement, were estimated at an average of 2.48 million won per month. The adequate living expenses, which allow for spending on travel, leisure activities, and grandchildren's allowances, were calculated at 3.5 million won per month.

Compared to the results of the same survey in 2023, minimum and adequate living expenses decreased by 30,000 won and 190,000 won respectively.

However, considering current household income, expenditures, and savings capacity, survey respondents stated that they can secure an average of only 2.3 million won per month for retirement living expenses.

This amount is not only less than their self-assessed minimum living expenses (2.48 million won) but also only 65.7% of the adequate living expenses (3.5 million won). This signifies a shortfall of 1.2 million won for a comfortable retirement life.

Minimum and adequate living expenses in retirement [Provided by KB Financial Group. Reproduction and database prohibited]

Methods for securing retirement living expenses (multiple responses) included the National Pension (88.6%), financial income (50.2%), earned income (47.5%), private pensions (47.8%), and retirement pensions (42.2%).

For the 2,401 individuals who have not yet retired, the desired retirement age was an average of 65 years. However, for the 503 individuals who have already retired, their actual retirement age was an average of 56 years, nine years earlier than their hopes. The average age at which people begin their financial retirement preparations was found to be 48 years old.

Methods for securing retirement living expenses [Provided by KB Financial Group. Reproduction and database prohibited]

Those willing to utilize or already receiving monthly retirement living funds through the home pension system, which allows for receiving funds by mortgaging a home, accounted for 33.3% of the total respondents. However, the responses for "not willing to utilize" (33.0%) and "never considered" (33.6%) each accounted for one-third of the respondents.

For the 2,716 individuals who have not yet retired, the primary requirement for a retirement residence (multiple responses) was access to medical facilities, followed by transportation, natural environments such as parks, and shopping facilities like supermarkets. Yonhap News

Desired retirement age and actual retirement age [Provided by KB Financial Group. Reproduction and database prohibited]