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Working-age surplus shrinks, impacting transfers to younger and older generations

Published: 25 Sep. 2025, 15:20

Shoppers buy goods at Bujeon Market in Busanjin District, Busan, on Sept. 24 ahead of the Chuseok holiday. [YONHAP]

Koreans on average start earning more than they spend at 28, reach their peak labor income at 45, and return to deficit at 61, government data showed Thursday.

Total household consumption in 2023 stood at 1.46 quadrillion won ($1.04 trillion), outpacing labor income of 1.23 quadrillion won, according to the 2023 National Transfer Accounts released by Statistics Korea. That left a life-cycle deficit of 226.4 trillion won, the largest since records began in 2010.

On a per capita basis, individuals run a deficit from birth until age 27, before recording their first surplus at 28. Labor income peaks at 44.33 million won at 45, generating a surplus of 17.47 million won, but declines afterward. By 61, spending again outweighs income.

Consumption peaked earlier, at age 16, when per capita spending reached 44.18 million won. Education costs weigh most heavily on the young, while health care costs drive deficits among older people.

“Labor income also increased, but inflation and stronger private consumption pushed spending up faster,” a Statistics Korea official said. “Higher medical and living expenses among older Koreans played a major role in expanding the deficit.”

The overall life-cycle deficit surpassed 200 trillion won for the first time last year, as consumption growth of 7.0 percent outpaced labor income growth of 5.5 percent.

A pedestrian walks by a clothes shop in Seoul on Jan. 12. [YONHAP]

By age group, the deficit of children aged 0 to 14 rose 4.3 percent from the year before to 184.4 trillion won, while the deficit of those 65 and older jumped 10.3 percent to 179.2 trillion won. In contrast, the working-age population aged 15 to 64 posted a surplus of 137.2 trillion won, down 4.7 percent.

Transfers from the working-age population to younger and older generations topped 300 trillion won for the first time, reaching 320.7 trillion won. Of that, 184.5 trillion won went to children and 131.1 trillion won to older people. Transfers included public spending on education and health care as well as private support such as allowances, living expenses, inheritance and gifts.

As the surplus of the working-age population shrinks, its ability to support other generations has weakened. Workers paid 199.4 trillion won in taxes last year, which was redistributed as 92.4 trillion won for children and 106.9 trillion won for older adults. Public transfers mainly covered education and health spending, while households bore the cost of living and medical care.

"Working-age Koreans are increasingly relying on asset and capital income, and when that is insufficient, on borrowing, to maintain support," Statistics Korea said. "The burden not covered by public transfers is shifting to households."

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY BAE JAE-SUNG [[email protected]]