Korea is entering a super-aging society and the era of centenarians.
As human lifespans are extended due to various environmental changes and technological advancements, the time after retirement is gradually increasing. This presents new opportunities and challenges to many people.
The second act of life is a time of both excitement and anxiety. How to live a long life after retirement is a concern that all retirees face. The uncertainty of not having enough assets, not being able to help children, and not being a burden to them, adds to the anxiety.
After living as a salaried worker for 30 years, the time comes when you have to secure your own income. Options such as re-employment or starting a business do not seem easy, and especially failure in starting a business can make your life in old age more difficult and miserable. This is because the reality is that recovery is almost impossible. Therefore, a stable and sustainable source of income is necessary.
Income Property
Income-generating real estate refers to a product that generates rent. There is a preconception that real estate requires a huge amount of money, but in some cases, you can invest in income-generating real estate for the price of an apartment in Seoul. It may not be as good as a salary earner at the time of retirement, but if you lower your standards and change your living environment, income-generating real estate can be a very useful option as a source of income after retirement, as it can provide stable rental income, protection of investment principal, and even capital gains.
We are already the building owner
As the saying goes, “The landlord is above the Creator,” there is a perception that it is difficult to become a landlord because it requires a huge amount of investment capital. However, from a real estate investment perspective, a salaried worker who earns 50 million won after tax is in the same economic position as a landlord who receives rent from a building worth 1.25 billion won based on an annual return of 4%. With this perspective, being a landlord is no longer a distant dream.
Become a little building owner
If you look up and see the world from afar and change your living environment a little, you can become a “small building owner.” If you sell your apartment in Seoul and add your retirement pay to invest in a small rental building in the metropolitan area or the provinces, it is possible. There are surprisingly many buildings worth 1 billion won in the metropolitan area or small cities in the provinces. These buildings also offer high rental yields that cannot be expected in the Seoul area.
Of course, in some cases, the income may be less than when you were a salaried worker, but if the investment principal is secured and stable rental income is guaranteed, it will be a much wiser retirement plan than starting a business.
You just need to look far ahead and change your lifestyle a little. Life after retirement can lead to a stable and happy old age as a small building owner. If you set achievable goals and learn about income-generating real estate from now on, the path to becoming the main character of the second act of your life will open.
