Saving for retirement tall order for households with children

Saving for retirement tall order for households with children

The average Korean households will need 2.26 million won ($1,900) per month for essential costs of living after retirement, but what they are saving now comes to less than half of that, a recent study has revealed.

According to a Seoul think tank under KB Financial Group, Korean households’ average postretirement income from savings, pensions and other sources is projected at an average 1.1 million won, about 48 percent of the amount needed.

The deficit is largest for households with children, who would need 2.52 million won, but will have just 1.09 million in monthly income.

By profession, government employees are best prepared for retirement, thanks to the country’s strong public service pension systems. Benefits from these vocational pension schemes are projected to cover more than half of postretirement costs.

The self-employed turned out least prepared.

The study is based on a survey of 2,906 adults.

Source:http://www.koreaherald.com/view.php?ud=20151213000373

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