'Koreans Earn the Most at 45... Deficits Peak at Education in Youth and Medical Expenses in Old Age'

Ministry of Data and Statistics Releases "2024 National Transfer Accounts"
Elderly Deficit Surpasses Youth for the First Time

The data shows that for Koreans, age 45 is when they record the largest lifetime surplus, with labor income exceeding consumption. In contrast, at age 16—when educational expenses peak due to university admissions—people experience the largest deficit. After retirement, due to increased medical expenses, the structure shifts back to a deficit.

For the first time since statistics have been compiled, the deficit of the elderly has surpassed that of the youth, as population aging converges with increased consumption capacity among older adults.

On the 20th, a banner related to medical school entrance exams is posted on the exterior wall of an academy in the academy district of Daechi-dong, Gangnam-gu, Seoul. Photo by Kang Jin-hyung

According to the "2024 National Transfer Accounts" released by the Ministry of Data and Statistics on September 17, the per capita lifecycle by age exhibits a three-stage pattern: "deficit → surplus → deficit." From age 0 to 27, spending exceeds income, resulting in a deficit, with the largest deficit occurring at age 16 (46.04 million won). The transition to surplus happens at age 28, after which, through age 60, labor income outpaces consumption.

The largest surplus is recorded at age 45, with a per capita surplus of 19.32 million won. This is due to labor income peaking at 46.51 million won per person during this period. After age 61, declining income and increasing medical expenses move individuals into a deficit zone once again. However, the age of re-entering deficit has been delayed from age 56 in 2010 to age 61 in 2024—a five-year change. This shift is attributed to an increase in seniors who continue economic activities post-retirement.

Lifecycle deficits by age group are covered by public transfers in the form of taxes and by private transfers within households. The net outflow of 344.9 trillion won from the working-age population (ages 15-64) was distributed as 185.9 trillion won to the youth (age 14 and under) and 148.3 trillion won to the elderly (age 65 and over).

Regarding public transfers, the working-age population saw a net outflow of 216.3 trillion won, with net inflows of 93.3 trillion won and 123 trillion won to the youth and elderly, respectively. For private transfers, the working-age group had a net outflow of 128.6 trillion won, with net inflows of 92.6 trillion won to the youth and 25.3 trillion won to the elderly.

In 2024, the total lifecycle deficit (consumption minus labor income) reached 220.1 trillion won, down 7.3 trillion won from the previous year. This was because the increase in consumption was less than the increase in income. Total consumption rose 3.4% to 1,509.8 trillion won, while labor income grew 4.6% to 1,289.7 trillion won.

Notably, the elderly experienced the highest increase in consumption at 8.1%, and their share of total consumption (17.5%) also reached a record high. Consequently, for the first time, the elderly's deficit (188.9 trillion won) surpassed the youth's deficit (186.2 trillion won). The working-age population recorded a surplus of 155 trillion won.

An official from the Ministry of Data and Statistics analyzed, "This result stems both from increased consumption capacity due to higher labor and asset income among the elderly and from population growth as a result of aging."

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