Retirement Age and Housing Consumption: The Case of South Korea

South Korea became an aging society in 2000 and will become a super-aged nation 2026. The extended life expectancy earlier retirement make workers’ preparation for more difficult, that hardship might lead to poorer living conditions after retirement. As annuity payments are, general, not enough retirees maintain their previous standard of retirement, retired households would have liquidate financial real assets cover household expenditures. housing takes the biggest share households’ total Korea, it seems be natural downsize houses. However, there is no consensus literature on downsizing, debate still ongoing. In order understand whether or downsizing by occurs this paper examines impact timing consumption using econometric model tenure choice housing. results show early group populated region does house, while negatively associated with late peripheral region.