2024 Life-Cycle Deficit Reached 220.1 Trillion Won; 45-Year-Olds Recorded a 46.51 Million Won Surplus, with Deficits Resuming at 61

[Financial News] South Koreans began earning more in labor income than they spent at age 28, turning to a surplus, but slipped back into deficit at age 61.
According to the 2024 National Transfer Accounts released by the Ministry of Data and Statistics on the 17th, the life-cycle deficit last year totaled 220.1 trillion won, down 7.3 trillion won from the previous year. The life-cycle deficit is the amount of consumption minus labor income and serves as an indicator of age-based economic activity and resource transfers between generations.
Total consumption rose 3.4% year on year to 1,509.8 trillion won. Labor income increased 4.6% to 1,289.7 trillion won, growing faster than consumption. As a result, the life-cycle deficit narrowed from the previous year.
The working-age population, consisting of people aged 15 to 64, recorded a surplus of 155 trillion won. Although consumption rose 2.7% year on year to 1,059.8 trillion won, labor income reached 1,214.9 trillion won, exceeding consumption.
By contrast, children aged 0 to 14 recorded a deficit of 186.2 trillion won, while the older population aged 65 and over posted a deficit of 188.9 trillion won. Among children, consumption rose 1.0% despite no labor income. For the older population, labor income amounted to just 74.8 trillion won, while consumption increased 8.1% to 263.7 trillion won.
On a per-capita life-cycle basis, consumption exceeded labor income from birth through age 27, resulting in a deficit. The balance turned positive at age 28 and remained so through age 60, before returning to a deficit at age 61 as labor income declined. Per-capita consumption peaked at 46.04 million won at age 16. Per-capita labor income was highest at age 45, reaching 46.51 million won.
Intergenerational deficits were financed through transfers and asset reallocation. Age reallocation totaled 220.1 trillion won, comprising a net outflow of 10.7 trillion won through transfers and a net inflow of 230.8 trillion won through asset reallocation.
Transfers primarily involved resources moving from the working-age population to children and the older population. Both public and private transfers recorded net outflows from the working-age population and net inflows for children and the older population. Per-capita public transfers recorded their largest net inflow at age 7 and their largest net outflow at age 46. For private transfers, the respective peaks came at ages 17 and 47.
The working-age population recorded the largest net inflow from asset reallocation. Total asset reallocation amounted to 230.8 trillion won, consisting of net inflows of 189.8 trillion won for the working-age population, 40.7 trillion won for the older population, and 0.3 trillion won for children. Of this total, private asset reallocation generated net inflows of 172.1 trillion won for the working-age population and 38.4 trillion won for the older population.

[email protected] Kim Chan-mi Reporter