SEOUL, SOUTH KOREA, March 26, 2018 – The Seoul Institute, the official think tank of the Seoul Metropolitan Government, releases the consumer sentiment index for the first quarter of the year, and its 247th policy report highlighting main economic issues for 2018.
The report said that Seoul citizens consider those aged over 65 as the elderly people, and 49.9 percent of the households in the city is preparing for their later years. 49.5 percent of respondents answered they joined the public pension plan, such as the National Pension, as a means of preparation for old age, which is followed by private pension plan (25%), real estate, rental income and reverse mortgage loan (10.8%), and bank deposits (10.6%).
According to the report, the citizens think that the modest cost of living for an elderly couple will be an average of 2,515,000 Won ($2,360) a month. Most of the citizens responded that the level of their current financial preparation is ‘enough’ or ‘less enough.’ The main reason why they are not able to prepare well for their golden years is, they answered, that they should buy a house or pay debts.
When asked about the most urgent measures against the aging society, they said the government’s support plan to create jobs for the senior citizens (40%); to expand elderly medical care services (20.6%); to establish the national system to deal with senile dementia (17.8%); to increase the amount of Basic Old Age Pension and to expand its recipients (11.9%).
The Consumer Sentiment Index for the first quarter of 2018 is 97.3, a decrease by 6.0 point from the previous quarter. It is expected to be improved once the job market gets better. The current living state index, one of the main categories of the Consumer Sentiment Index, has been decreased by 2.1 point to 86.1 from the previous quarter, and the future living state index has also been down by 1.9 point to 96.0. That is because growing households expect that their living conditions will be worse in one year due to decreased household income and increased living costs.