Future Korean Society with Aging Population

Positives and negatives of Confucianism for elderly coexist in Korea society. Confucianism is great to gather family by sharing respects between family generations. Also, it helps to understand each generation and to support each other. However, in recent Korea society, there are some negatives also due to changes of cultures from influx of western culture and changes from economic growth and social context.

It is sure that Korea significantly needs any solution or implication for future old generations. Below the article says Korea will be the most aged society and the aging population will rapidly grow.

07-10-2009 18:08       Korea to Become Most Aged Society in OECD in 2050

By Lee Hyo-sik Staff Reporter South Korea will become the most aged society among advanced economies in 2050, with nearly four out of every 10 Koreans being aged 65 or over due to low birthrates and the rapidly aging population. The nation's population is expected to begin declining from 2018 and by 2050, there will be 6.41 million fewer people in the country than now. According to the National Statistical Office (NSO) Friday, people over 65 years of age will account for 38.2 percent of Korea's population in 2050, making it the most aged society among the 30 member economies of the Organization for Economic Cooperation and Development (OECD). To prepare this growth old population in society, I think Korean people can take some positives from Confucianism to support elderly and try to remove the negatives by giving more social and government supports rather than relying on family supports.  From our reading, Olson states that to support Chinese elderly in American society, understanding cultures is important to give adequate helps for them.  "Transcultural skills allow the integration of unique socio-psychological factors in nursing care and social welfare plans, interventions, and evaluations. Curricula in nursing programs and social services should include courses that encourage and promote a transcultural or multicultural approach." (Olson 2001, page 30)  To apply this into Korean elderly who suffer from generational cultural gap, I think making nursing care and social welfare system with family concept would be helpful to reduce loneliness of elderly. For example, caregivers can play a role to be a daughter or a son of old people who live alone, and keep in touch each other as a real family.  In addition, government also has to prepare to support elderly financially.    01-27-2012 21:12     Pension reform needed to prepare for aging society By Kwon Eun-young A veteran pension expert said that South Korea needs to reform its pension governance system in order to prepare for a rapidly aging population to ensure stability for life after retirement. He points out that since corporate pension plans are relatively new in Korea, there is still greater focus on plan adoption than ongoing requirements but it is now time to change to meet such needs. “Korea is facing the challenge of one of the most rapidly aging populations in the world as a result of continuing improvements in life expectancy combined with low birth rates,” Simon Ferry, a pension actuary from Aon Hewitt said in a recent interview with Business Focus. This means that the current working generation may not be able to rely on receiving enough financial support from the government or their children to maintain their current quality of life in retirement. “The changes bring Korea closer to how retirement benefits are provided in many other countries by allowing the option to introduce defined contribution plans, where benefits are based on contributions made by the employer and investment returns earned on those contributions. Corporate pensions can provide an important role in helping support people in their retirement.” Defined contribution plans, which entitle an employee to decide how to invest based on their own appetite for risk and return, differs from severance pay arrangements or defined benefit plans, where the benefit paid is based on the final pensionable salary.

Above article is about reforming pension for future old population. As I mentioned previous blog post, baby boomers populations come to senior age in few years and most of them will be retired in few years too. Korea society, therefore, need to break the stereotype that elderly support is on their own family and should prepare with proper government policy - such as the pension plan in the article- to give financial support for old people who need.

Reference

Laura Katz Olson (2001), Age Through Ethnic Lenses: Caring for Elderly in a Multicultural Society. MA, Rowman & Littlefield Publishers, INC.

      Lee, Hyo-Sik,  2009. Korea Become Most Aged Society in OECD in 2050. Korea Times, 

http://www.koreatimes.co.kr/www/news/biz/2010/05/123_48264.html  [Accessed 25 April 2012]

      Kwon, Eun-Kyoung., 2012. Pension Reform Needed to prepare for aging society, Korea Times, http://www.koreatimes.co.kr/www/news/bizfocus/2012/04/331_103615.html  [Accessed 25 April 2012]

Today's Elderly in Korea: Negative Consequences of Confucianism 2: Financial Burdens

Continue from the previous post about 'Negative consequences from Generational gap', in this post, I will discuss about the negative consequences from financial burdens to support elderly in Confucianism and Korea society.

Confucianism stresses that younger generation should support their parents and grandparents as a duty of children. However, it could be significant financial burden for children. It becomes a generally accepted idea in Korea society that supporting elderly is a job of other family members. However, as we saw the previous blog posts that not many people in these days living with their parents and different generational cultures make people no more living or supporting their parents as a duty, actually current elderly in Korea suffers from financial hardships.

Elderly concerned most about finances, health

Aging Koreans cited economic difficulty and health as their biggest concerns, but the weight of their worries varied according to their education levels, a report showed Monday. In a survey of 60-year-olds by Statistics Korea, 43.2 percent of the respondents with elementary education picked economic difficulty as their top concern. Health closely followed at 40.5 percent, while unemployment and loneliness each stood at 4.7 percent and 4.3 percent. In contrast, 40.5 percent of the respondents with college education said health was their biggest worry. Economic difficulty was cited as a less serious problem at 25.3 percent, according to the report. A total of 8.1 percent of the respondents also picked weakening respect for the elderly, reflecting their concerns over a fading Confucianism culture in modern-day Korea. The article above tells us the financial difficulties even are harder for lower educated group of people.  From our readings, Olson also mentions that the stereotype that people think caring elderly is on their own family in Confucianism society makes harder to provide adequate social-supports for the old population.  "One of the most accepted stereotypes regarding the Chinese elderly is that they do not have any problems with regard to long-term care. It is believed that because of their adherence to traditional values, the Chinese family will provide for their elderly parents, and without any outside help." (Olson 2001, page 30) In addition, current Korea old population is sharply growing because Korean baby boomers generation, who were born right after the Korean War (1955-1963) becomes 60s and 70s in few years. Because of their sudden and excessive growth of older population, current young population cannot give enough support for their elderly.    03-08-2011 18:38       Korean baby boomers not ready for retirement By Kang Seung-woo The Korean baby boomer generation is not fully ready for its post-retirement life, although they are optimistic about it, a report by the Korean arm of a U.S.-based life insurer showed Tuesday. The MetLife Korea Foundation, the Seoul National University Institute on Aging and Gallup Korea jointly released a study of 4,668 boomers, titled “Korean Baby Boomers in Transition.” These people were born between 1955 and 1963, the period after the Korean War ended in 1953 that saw a sharp increase in birthrates. The report said that only 27 percent of them have calculated their retirement income needs. Considering the fact that the oldest Korean baby boomer reached 55 in 2010 and retirement can begin as early as this, the low retirement income calculation rate could emerge as a serious national problem. It also said that only about half of baby boomers are currently saving for retirement. The average amount of savings for retirement is 172,000 won ($154) per month and a large majority of baby boomers possess insurance policies for retirement (8 out of 10). Nearly 85 percent contributed to the national pension and other public pensions systems, while 69 percent possess bank depository products to prepare for retirement.

To sum up, current old population suffers from double jeopardies- cultural generational gap and financial difficulties. They experienced and accustomed to the concept of Confucianism at their younger age and most of them struggled to support their own parents by working hard. However, at their old age, they can no longer rely on their children's support for them due to the cultural changes. Also, they have to worry about their later life after retirement. 

Reference

  Laura Katz Olson (2001), Age Through Ethnic Lenses: Caring for Elderly in a Multicultural Society. MA, Rowman & Littlefield Publishers, INC.
      Yonhap,  2012. Elderly Concerns most about Finances, Health http://www.koreatimes.co.kr/www/news/nation/2012/01/117_103317.html  [Accessed 25 April 2012]
      Kang, Seong-woo., 2011. Korean Baby Boomers Not Ready for Retirement, Korea Times, http://www.koreatimes.co.kr/www/news/biz/2011/03/123_82728.html  [Accessed 25 April 2012]