The overall lifecycle deficit has decreased, but economic disparities among age groups persist. Individuals aged 55 to 64 have seen an increase in surplus due to rising labor income, while the lifecycle deficit for those aged 15 to 24 has grown compared to a decade ago. In older age groups, both consumption and labor income have increased.
The National Data Agency released its "2024 National Transfer Accounts" report on September 17, detailing the relationship between consumption and labor income across different age groups.
In 2024, the lifecycle deficit, calculated by subtracting labor income from consumption, totaled 220.119 trillion won, a decrease of 7.3 trillion won from the previous year. Consumption rose by 3.4% to 1,509.794 trillion won, while labor income increased by 4.6% to 1,289.675 trillion won, leading to a reduction in the deficit.
By age group, those aged 0 to 14 experienced a deficit of 186.22 trillion won. The working-age group of 15 to 64 generated a surplus of 155.44 trillion won, while those aged 65 and older recorded a deficit of 188.943 trillion won.
The per capita lifecycle deficit exhibited a three-stage structure of 'deficit → surplus → deficit' based on age. The largest deficit occurred at age 16, amounting to 46.04 million won. Labor income began to rise, leading to a surplus starting at age 28, peaking at 19.32 million won at age 45 before declining again to a deficit starting at age 61.
The age at which individuals enter surplus has remained stable at around 27 to 28 since 2010. However, the age for reentering a deficit has increased, rising from 56 in 2010 to 61 in 2024, likely due to longer participation in the labor market.
In fact, individuals aged 55 to 64 recorded a lifecycle deficit of 12.789 trillion won in 2014, but transitioned to a surplus of 19.962 trillion won by 2024. According to the National Data Agency, this age group was in deficit until 2019 but has been in surplus since 2020.
Conversely, the deficit for those aged 15 to 24 increased from 113.92 trillion won in 2014 to 139.441 trillion won in 2024, an increase of 25.52 trillion won. The surplus for those aged 25 to 34 decreased from 32.922 trillion won to 24.37 trillion won, while the surplus for those aged 35 to 44 grew from 93.099 trillion won to 108.564 trillion won. The surplus for those aged 45 to 54 also expanded significantly from 72.161 trillion won to 141.589 trillion won.
Differences in the growth rates of consumption and labor income were also evident by age group. Total consumption reached 1,509.794 trillion won, a 3.4% increase from the previous year. Public consumption rose by 4.5% to 447.51 trillion won, while private consumption increased by 2.9% to 1,062.285 trillion won.
Consumption among those aged 65 and older reached 263.733 trillion won, an 8.1% increase from the previous year. The share of older adults in total consumption rose from 16.7% to 17.5%. Both public and private consumption among older adults grew at rates higher than the overall increase.
Labor income for those aged 65 and older also increased, reaching 74.79 trillion won, a 15.7% rise that significantly outpaced the overall labor income growth rate of 4.6%. Labor income for the working-age group increased by 4.0% to 1,214.885 trillion won.
A representative from the National Data Agency stated, "The youth demographic is significantly impacted by education-related consumption, while the elderly are influenced by health-related consumption," adding that "per capita labor income gradually increases after age 17, peaking at 45 years old at 46.51 million won before gradually declining." They further explained that the lifecycle deficit has decreased because the growth in consumption has been smaller than the increase in labor income.
* This article has been translated by AI.
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