Retirement News : Seniors : What Should I Rely on for Living after Retirement?

What Should I Rely on for Living after Retirement?

Date Added: 22-09-2005

From Korea, the eternal question for many approaching retirement; how to survive?  Read the excerpt below:

Donga - Seoul,South Korea

SEPTEMBER 21, 2005 07:22

“I am afraid of watching news on TV. I bought an apartment with loans after having lived in a rented house for eight years. But housing prices are falling. I cannot even think of buying insurance plans or paying into pension schemes because I have to pay off the loans.”

Lee (37), a mid-level manager to a large company, bought a 26-pyeong apartment in Yangjae-dong, Seoul for 385 million won in February this year, when housing prices were skyrocketing.

He yelled for joy as recently as July when the price of the house jumped up to 450 million won. But falling housing prices since the announcement of the “8/31 comprehensive property measures” have plagued him.

Lee takes home 2.5 million won every month after bonuses and taxes. He has to pay 720,000 won in monthly interest on the loan worth 150 million won. From next year, it will become 1.1 million won as he has to begin paying back the principal. Only 500,000-800,000 won is available for monthly living expenses after kindergarten fees and childcare expenses for his 2-year-old and 6-year-old sons, and apartment maintenance fees. Saving for his retirement is only a wishful thinking.

Read the entire story:

http://english.donga.com/srv/service.php3?bicode=020000&biid=2005092125808