"I Thought I Was Middle Class..." Surprised by High Savings and Asset Requirements That Feel Out of Reach

Households Must Be Able to Save Over 10% of Disposable Income
53% Qualify as Middle Class by Income, but Few Are Ready for Retirement

If your income exceeds a certain level and you own your home, it is easy to consider yourself part of the middle class.

An office worker looking at an apartment. Getty Images

Although more than half of households in Korea qualify as middle class based on income, a recent survey found that only one in four households fit the definition of the "true middle class," who have balanced consumption, savings, and retirement preparation.

Earning 6.31 Million Won per Month, Spending 3.19 Million Won... Net Assets in the 400 Million-Won Range

On the 16th, with the daytime high in Seoul exceeding 30 degrees Celsius, showing summer weather, office workers near Seoul Plaza in Jung-gu, Seoul, are seen carrying their suit jackets in their hands as they walk./Photo by Jin-Hyung Kang aymsdream@

According to the financial investment industry on the 16th, the NH Investment & Securities 100-Year Life Research Institute recently revealed in its report that, among households meeting the OECD's income-based middle-class criteria, only 24.6% actually fulfill all requirements for consumption capacity, assets, and retirement readiness.

Only 8% meet all six criteria that truly distinguish the middle class. NH Investment & Securities 100-Year Life Research Institute "2026 Middle-Class Report"

The institute defines middle-class households as having an average monthly disposable income of 6.31 million won (75.72 million won annually) and an average consumption expenditure of about 3.19 million won (38.22 million won annually). The remaining amount after consumption reaches 37.5 million won per year.

Their asset size also significantly surpasses the overall household average. The median net assets of these households amounted to 417.05 million won, with financial assets at 112.3 million won, and 72.5% of these households own their homes.

Middle-Class Income, but Barriers in Savings and Asset Accumulation

In terms of income alone, 52.9% of all households belong to the middle class. As of last year, using the median equivalized disposable income (37.44 million won per year) as a benchmark, the middle-class income range is monthly 2.34 million–6.24 million won for single-person households, 3.31 million–8.82 million won for two-person households, and 4.05 million–10.81 million won for three-person households.

Table comparing the median values of all households and middle-class households. NH Investment & Securities 100-Year Life Research Institute "2026 Middle-Class Report"

However, the proportion of households with 'saving capacity,' meaning the ability to save more than 10% of disposable income, drops to 53.2%. When stricter standards are applied—such as having net assets of 238.6–694.32 million won, debt service ratio below 30% of disposable income, and stable retirement plans—the final share falls to just 24.6%.

Looking at each stage of the life cycle, the proportion of true middle-class households is 24.6% among those aged 39 or younger, rising to 30.5% in their 40s and 31.2% in their 50s, but then drops to 25.3% in their 60s and plummets to 10.5% for those aged 70 and older.

US retired households show a high percentage of responses indicating 'insufficient retirement preparation,' while retired households exhibit a high percentage of responses indicating 'insufficient living expenses.' NH Investment & Securities 100-Year Life Research Institute "2026 Middle-Class Report"

An institute official stated, "Stable earned income and a solid residential foundation enable appropriate consumption and savings, which in turn lead to asset accumulation and retirement readiness. This virtuous cycle is what truly creates a real middle class."

Urgent Need to Improve 'Middle-Class Safety Nets' such as Nursing Facilities and Public Rentals

Another significant issue is the gap in safety nets for the middle class. The so-called 'care problem' is especially grave, as most benefits from the current system are targeted either at high-income or low-income groups. According to current regulations, operators of elderly care facilities above a certain size are required to directly own the land and buildings for their operations.

Mokdong Lotte VL Lewesert Senior House Model House. Photo by Jo Yongjun, The Asia Business Daily

Because the burden of acquiring urban sites and construction costs is so high, insurance companies often prefer premium facilities to low-cost, multi-bed care homes. Industry experts point out that, in order to build a care infrastructure that the middle class can afford, the healthcare REITs currently limited to senior housing should be expanded to include care facilities, and that existing insurance assets should be allowed to convert into care expenses under new regulations.

Graphic to Aid Understanding of the Article. Photo by Dongmin Seo of The Asia Business Daily

The government has also begun developing measures to stabilize housing for the middle class. On September 1, the government announced next year's budget at 69 trillion won, an increase of 6.2 trillion won (9.9%) over this year's main budget of 62.8 trillion won. In particular, a significant portion of this budget will be allocated to supplying "universal rental housing" with medium-sized units for the middle class.

At a real estate policy forum in July, President Lee Jaemyung said, "When people hear 'public rental housing,' they usually imagine small units, like 8 or 12 pyeong, for individuals in tough economic situations. We are now internally reviewing a plan to supply high-quality public rental housing of around 25 or 30 pyeong, focusing on locations near subway stations, so that the middle class can also enjoy long-term residency."

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