Later Inheritance Hampers Economic Vitality

As people live longer their children inherit their money later in life, when they are already past the peak age for economic activity, which place another burden on Korea's sputtering economy.

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Koreans' life expectancy was 82.4 years as of 2016, up a whopping three years over the previous eight years alone.

The life expectancy of the upper 20 percent in the income bracket, who have a lot of assets to leave, is even higher at 85 years, so their children can expect to come into the money only after the age of 60, when they themselves are more or less retired.

The peak age for consumption is 46, according to a survey by the U.S. Economics and Statistics Administration. This means that people are most likely to buy a bigger house, send their children to college and marry them off, and buy the best car of their life when they are around that age.

But now they can expect no windfall from their parents' death in that age bracket, which slows down the whole consumption cycle.

Japan, which is in a similar situation, has introduced various kinds of taxes that encourage handing over inheritance early.

"Money isn't circulating as many elderly parents in their 90s give their inheritance to children in their 60s", said Prof. Lee Jong-hoon of Myongji University. "But there's no sufficient research on the elderly people's patterns of consumption, leaving an inheritance or gifting money to their children".