[Financial Planning for the 100-Year Life] How to Enjoy Solitude in Old Age Living Alone

Building the Ability to Endure Loneliness
Changing Housing Types to Avoid Isolation
Enrolling in Pensions for Surviving Spouses

The number of elderly people living alone is rapidly increasing. According to Statistics Korea, as of this year, there are 1,973,000 elderly people living alone, accounting for 21.8% of the total elderly population. Reasons for living alone in old age include bereavement, being unmarried, and divorce. Recently, the rates of lifetime unmarried and middle-aged or late-life divorces have also increased. The lifetime unmarried rate, which indicates the proportion of people who have never married by around age 50, was only 0.4% for men and 0.3% for women in 1980. However, by 2020, it rose to 16.8% for men and 7.6% for women. Divorces among couples married for over 20 years in middle or late life have also increased. The proportion of middle-aged and late-life divorces, which was only 5% of all divorces in 1990, rose to 39% in 2021.

Living alone should not necessarily be viewed negatively. When urbanization advanced, there were many concerns about nuclear families, but nuclear families grew into a new family form and became mainstream. Living alone in old age will likely follow a similar path. As average life expectancy increases while the lifespan gap between men and women remains, and as lifetime unmarried and middle-aged or late-life divorces increase, the number of people living alone will inevitably rise.

Western countries have experienced the issue of living alone in old age much earlier than we have. In Sweden, the nationwide average proportion of single-person households, including both young and elderly generations, is 57%. In Stockholm, it reaches 60% (compared to 34.5% single-person household rate in Korea in 2020). Nevertheless, according to a survey by The Economist, Sweden is known as the seventh best country to live in worldwide. This is because the conditions for living alone are well established there.

Among preparations for living alone in old age, the most important is developing the ability to endure loneliness, that is, the ability to overcome solitude. Even if one secures a certain amount of retirement funds during their working years to solve financial issues, escaping loneliness is not easy. Of course, one should not deliberately isolate themselves under the pretext of building this ability. Even when living alone, it is necessary to engage in meaningful activities, pursue hobbies that suit oneself, and make efforts to integrate into new communities.

The most important factor in avoiding isolation is the type of housing. If one does not wish to live with their children, welfare facilities close by are the best alternative. In Japan, which experienced an aging society earlier than us, elderly couples living alone or widowed individuals prefer small-sized housing of about 18 to 20 pyeong (approximately 60 to 66 square meters) where shopping, medical care, hobbies, entertainment, and socializing can all be accessed within a short distance. This is a case that our elderly generation, who still prefer large, high-rise apartments, should consider.

Another important aspect is how to prepare for living expenses in old age. The traditional retirement preparation centered on husbands must shift to consider wives, who are more likely to live alone later. About 80% of elderly people living alone are women, and the period they live alone is much longer than that of men. Therefore, wives should prepare in advance by subscribing to pensions and insurance, anticipating the possibility of living alone.

It is also worth noting that while family structures are breaking down, family recovery movements are emerging. In Japan today, if a building is remodeled to allow three generations to live independently within it, tax benefits are provided. Additionally, group living and sharing economy initiatives are being promoted to enable elderly people living alone or as couples in large houses to live together with younger generations.

Kang Changhee, Representative of the Happy 100-Year Asset Management Research Association

This content was produced with the assistance of AI translation services.