Korea has one of the lowest birthrates among industrialized nations. Thus the Korean government continued to devote all its energy to achieving its performance objectives. But coping with the increasing aging trend is as important as coping with the low birthrates. The progress speed to aging society of Korea is faster than that of the developed countries, which is result from the rapidly decline of birthrates and prolongation of the average span of life. Unless there is a dramatic turnaround, the nation`s senior population is expected to place an increasing strain on state spending over the coming years.
International Comparison of aging society
The demand of financial services about long-term saving and pensions will increase steeply because of going retirement age of baby boom generation. Whereas the financial services of Korea for aging society are insufficient to meet the rapidly increasing demands. The expansion of financial services is needed to manage the pension assets over the long period by enlargement of pension’s demand. And promoting industrial markets is also needed to cope with the increasing demand about health, nursing, and medical services owing to aging society. Asset management and systematic, customized financial services providing the aging society should be enlarged and the social awareness about this should be widespread.
Elderly people tend to have irregular incomes and most of them live on their monthly pension. The amount of pension is not sufficient to cover their living cost. Thus to manage the asset accumulation, the financial services providing aging society should be managed by some ways such as diversification and foreign investment. To meet this goal, it is essential to create an atmosphere for financial companies to make the financial products about aging society actively.
And sales channels should be advanced to the level of the developed countries for customers to approach the aging financial goods easily. The government should intense security system for investors and contractors since the customers are generally too old to cope with irregular situation. If they are once damaged by an illegal act such as incomplete sales, then it will lead to the failure of preparing their later years. It is better way to prepare one’s later years in his early ages than in old ages. The government should manage and expand financial education program systemically. By doing this, the aged will raise their awareness about aging risk and expand their ability of selecting financial products.