People in their 20s: 2.6% to 12.8%; those in their 30s: 2.8% to 13.4%

Double-digit share persists after 2021 retail investing boom

National pension tops list at 71.0%; savings and deposits at 44.1%

A board is displayed inside a dealing room at Hana Bank in Jung-gu, Seoul. (Yonhap)
A board is displayed inside a dealing room at Hana Bank in Jung-gu, Seoul. (Yonhap)

More Koreans in their 20s and 30s are choosing stocks and bonds to prepare for retirement, with the share roughly fivefold higher than 14 years ago. The share rose sharply after the 2021 retail investing boom and has stayed in double digits since, making stocks and bonds a key retirement-preparation tool for younger generations.

According to the Korean Statistical Information Service (KOSIS) Thursday, 12.8 percent of people in their 20s (aged 19 to 29) cited "stocks, bonds, etc." as a retirement-preparation method last year. That marks a 10.2-percentage-point increase from 2.6 percent in 2011, when the age-group survey began — a 4.9-fold rise over 14 years.

Generated by ChatGPT
Generated by ChatGPT

For people in their 30s, the share rose 10.6 percentage points over the same period, from 2.8 percent to 13.4 percent — a 4.8-fold increase from 2011. As of last year, people in their 30s posted the highest share of any age group choosing stocks and bonds as a retirement-preparation tool.

The share of people in their 20s and 30s citing stocks and bonds for retirement preparation jumped sharply around 2021, when retail investors flooded into the domestic stock market. In 2019, only 1.4 percent of those in their 20s and 2.7 percent of those in their 30s gave this answer. The figures leaped to 11.6 percent and 11.3 percent, respectively, in 2021. The upward trend continued afterward, with the two age groups posting 12.8 percent and 13.4 percent, respectively, last year.

Middle-aged and older Koreans also increased their use of stocks and bonds for retirement preparation, though the increase was relatively smaller. Among those in their 40s, the share rose from 2.4 percent in 2011 to 8.0 percent last year. For those in their 50s, it rose from 2.4 percent to 6.0 percent. Among those 60 and older, the share climbed from 1.4 percent to 3.1 percent over the same period.

However, the share among people in their 40s edged down to 8.0 percent last year from 8.2 percent in 2021. By contrast, the share kept rising among those in their 50s, from 4.9 percent to 6.0 percent, and among those 60 and older, from 2.2 percent to 3.1 percent.

Overall, the most commonly chosen retirement-preparation method was the national pension. Last year, 71.0 percent of people aged 19 and older cited the national pension as their retirement-preparation method, followed by savings and deposits along with savings-type insurance at 44.1 percent.

Among those in their 20s, the national pension was also the top choice at 69.0 percent, followed by savings and deposits and savings-type insurance at 45.9 percent. For those in their 30s, the national pension stood at 68.7 percent, while savings and deposits and savings-type insurance came in at 41.2 percent. The survey allowed multiple responses.


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