Opinions on extending the retirement age are diverging between South Korea and France. In France, there is significant backlash against raising the pension eligibility age, while in South Korea, there is growing demand to increase the legal retirement age to 65. The differing levels of income security from pensions and issues of elderly poverty are cited as key factors behind these disparities.
According to the Organization for Economic Cooperation and Development (OECD) on October 25, France's post-tax pension income replacement rate stands at 70.0%, which is 31.0 percentage points higher than South Korea's 39.0%. The pension income replacement rate refers to the proportion of pension benefits relative to pre-retirement income. There is also a notable difference in elderly poverty rates. As of 2023, South Korea's elderly poverty rate is 39.8%, the highest among OECD member countries, while France's rate is only 6.2%.
Many older adults in South Korea continue to participate in the workforce after retirement. The OECD's '2025 Pension Report' indicates that in 2024, the employment rate for those aged 65 to 69 in South Korea is projected to be 57%, more than double the OECD average of 26%. This active participation in the labor market is interpreted as a response to insufficient income security in retirement.
Support for extending the retirement age is also high in South Korea. A survey conducted by the Korean Confederation of Trade Unions among 1,000 adults aged 20 to 69 found that 88.3% of respondents support gradually raising the legal retirement age to 65.
The primary reason for this support, cited by 69.0% of respondents, is economic insecurity due to income gaps before receiving national pension benefits. However, younger respondents in their 20s and 30s expressed concerns that extending the retirement age could reduce job opportunities for young people, highlighting the need for separate employment measures for youth.
This concern arises from the potential income gap that could occur between retirement and the start of national pension benefits. Currently, South Korea's legal retirement age is 60, but the eligibility age for national pension benefits is being gradually raised to 65. As a result, retirees could face an income gap of up to five years.
In France, a reform to gradually raise the pension eligibility age from 62 to 64 was initiated in 2023 but faced strong opposition from labor unions and civil society. Consequently, the implementation of parts of the reform has been postponed until 2028.
Discussions on extending the retirement age continue in South Korea, but significant differences remain between labor and management. Labor representatives are calling for prompt legislation to address income gaps, while business leaders express concerns about rising labor costs and potential impacts on youth employment.
* This article has been translated by AI.
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