Could it be done – retirement in a modern,
technology-driven country like South Korea on savings of just $200,000?
Considering that the average Social Security
income of a U.S. retiree is over $1,300, the answer is yes! That $200,000 sum is
much less than financial advisors recommend; it’s also much, much more than the
average retiree is able to save.
According to U.S. News & World
Report, the National Institute on Retirement Security recently found that 45% of
working-age households have no retirement savings at all. Among people 55 to 64,
average household retirement savings total only $12,000. (You may benefit from
reading Investopedia's tutorial on Retirement Planning, particularly the article
How
Much Will I Need?)
So if your savings really amount to $200,000
you are way ahead of most of your peers. But even so, you’ll almost certainly be
a lot happier (financially, at least) abroad than in the United States. (See
Retirement: U.S. Vs. Abroad. And while you are making retirement plans, research other
options such as Retire
In Viet Nam with $200,000 and Find
The Top Retirement Cities In Cambodia.)
While some costs in South Korea are nearly as
high as in the United States, the cost-of-living indexes (80.14 compared to NYC
at 100 according to Numbeo on a
late May day in 2015) somewhat lower, and there are certain compensations.
You’ll undoubtedly have a faster internet connection there than you’ve ever
experienced and it might cost a lot less. Reports are that even way down in the
subway there is TV reception on cell phones. Such speeds and such high
technology could be a big help in communication with your family and friends
back in the U.S. These advantages would also help make it easier to do any kind
of part-time work you might have set up back home.
Eating Out as a Culinary Adventure
Also, living in such a vibrant economy has its
own delights. Koreans eat out a lot and therefore there are lots of restaurants,
from noodle shops to places for fine dining, as well as many food carts. In
fact, some say food in restaurants (or one the street) is less expensive than
food in grocery stores. Korean cuisine is varied and delicious. Kimchi (spicy
pickled vegetables) is served with most dishes and is Korea’s best-known
contribution to world cuisine. In Korean homes, there are even special Kimchi
refrigerators to conserve home-made versions of the side dish for a long
time.
Koreans are a hospitable people, too. There is
an ｅxpression covering celebrations at home that talks about “breaking the table
legs.” It refers to the fact that Koreans expect hosts to cover the table with
serving dishes heaped with food. When they’ve done that, the occasion is a
success. Since, according to all accounts, Koreans are a friendly people, you
can look forward to such invitations when you retire there.
Good Transportation Is a Plus
There’s also an excellent and
inexpensively-priced public transportation system, so you might consider living
outside the center of Seoul or another big city, where it’s less expensive to
live than it would be right in the center. (According to Numbeo, a one-bedroom
apartment in Seoul averages US$1,122.31 a month in rent; while a similar
apartment outside the center would be just US$689.02 a month.) Of course,
everything in South Korea is priced in KRW, the South Korean won, of which there
are at the present time, .00090 to the U.S. dollar. Those zeros are important in
this case.
Korea is a center of airline traffic and an
ideal place from which to explore the rest of Asia. Obviously it’s much cheaper
to visit Thailand, Malaysia, China and Japan from Korea than from the U.S. And
you will be able to easily travel around South Korea itself, which is not a
large country but has many beautiful spots, including beautiful beaches (but
they are not year-round delights, as the winters tend to be long and
cold).
Retirement Income Calculations
Some basic math shows that even if you add as
much as US$800 per month to your Social Security income. your $200,000 cash
savings account would last about 21 years ($200,000 ÷ $800 = 250 months, or 20.8
years). So, assuming you can live within your Social Security income except for
occasional travel and surprise expenditures, you should be fine in this vibrant,
modern country. Of course, no one can guarantee how long you’ll live or what
expenses will be in the future, but with a strong dollar, you can be way ahead
of the game.
There’s been talk of creating retirement visas
in South Korea, but it hasn’t happened yet. And South Korea is not the
retirement target for Americans that Japan, China or Hong Kong is, so far.
Americans must rely on three-month visas, but Canadians are eligible for
six-month stays, by the way. The visas can be renewed at the border, which is
never too far away, since South Korea is not a huge country. Tour operators
based in South Korea will often offer services specifically for expatriates
attempting to extend their stay, and will generally offer free online advice,
according to Escape Artist. According to that same website, there are nevertheless quite
a lot of Americans who have chosen to retire there, certainly enough to form a
community. Before they leave home, many Americans prepare to teach ESL (English
as a second language) – a possible extra source of retirement income, what with
Koreans’ recent interest in English (how could that not happen in a techie
country?). More and more Koreans speak some English, in fact.
The National Tax Service publishes the "Easy
Guide for Foreigners' Year-end Tax Settlement" each year. You can find copies in
the tax offices, at expat information centers, in some banks, and on-line. In
spite of the increase in English speakers, it’s also a good idea to study some
Korean before you go, since signs of most kinds are in that language only. It
takes a little study time to decipher signage in such a very different written
language well enough to get around confidently. Also, Koreans, like all peoples,
like visitors to make an effort in overcoming language barriers.
Retirees: Expect Some Respect
As an older person, you can expect some respect
in Korea, unlike the customary treatment in the U.S. According to The Week
magazine (2), “Not only do Koreans respect the elderly, but they also celebrate
them. For Koreans, the 60th and 70th birthdays are prominent life events, which
are commemorated with large-scale family parties and feasts. As in Chinese
culture, the universal expectation in Korea is that roles reverse once parents
age, and that it is an adult child's duty — and an honorable one at that — to
care for his or her parents. A simple daily event like riding public
transportation is also subject to this tradition: Out of respect for the
elderly, young people usually give up their seats for an aged person on a
crowded bus or subway train.
The Bottom Line
The trail of expats leading here is not so well
trod as to some other Southeast Asian countries, but with an average sized
Social Security payment plus a nest egg of US$200,000, you should be okay living
in this bustling, modern country.
![[윤희영의 News English] 한국이 살기 좋은 이유](http://image.chosun.com/sitedata/image/201507/07/2015070700295_0.jpg)
