The consumption growth rate of seniors 65 and older was tallied at twice that of the working-age population (15–64). Their total consumption aggregates hit an all-time high.
According to the National Data Agency (formerly Statistics Korea) on the 12th, the consumption aggregates of those 65 and older came to 243.8 trillion won in 2023. That was up 12.0% from a year earlier, the highest on record.
The consumption growth rate of the working-age population aged 15–64, which accounts for more than 70% of total consumption aggregates, was 6.3%, about half that of those 65 and older. The consumption growth rate of children aged 0–14 was 4.3%.
More than 60% of consumption by those 65 and older was private consumption, meaning individual expenditure. This refers to spending made directly by individuals, not public consumption such as welfare and medical services provided by the government. Private consumption rose 14.9% from a year earlier.
Among private consumption, other spending such as leisure, culture, and dining out increased sharply. Spending related to quality of life grew more than medical expenses.
It was found that, beyond pensions and family support, seniors consumed assets they owned. Their labor income was 64.6 trillion won, while their consumption was about six times their labor income.
The life-cycle deficit was 179.2 trillion won, which was covered by public and private transfers and private asset reallocation. Private asset reallocation refers to the amount used for consumption by reducing interest and rent or savings, or by disposing of assets.
Private asset reallocation was concentrated among the relatively younger elderly within the senior group. Of private asset reallocation, 68.5% was concentrated in those aged 65–74. The utilization of assets by the relatively younger elderly accounted for more than half.