South Korean labour unions are battling company managements to press an unusual demand: raising the age of retirement to give workers a few more wage-earning years before having to seek another job to supplement slim pensions, reports Reuters. The issue fuels a contest for jobs between older workers among one of the world's fastest-ageing populations, with a rate of poverty among its elderly of three times the OECD (Organisation for Economic Co-operation and Development) average, and young workforce entrants facing dwindling options.

"Having to move to low-quality jobs after retirement is perpetuating unstable labour for people in their 60s," one of the two largest umbrella unions, the Federation of Korean Trade Unions (FKTU), said in a statement. With South Korea expected to become a ‘super-ageing’ society in 2025, as more than a fifth of its population passes 65, demands to extend the retirement age are growing. But detractors say the change would worsen job prospects for the young, and hobble companies from adapting to a changing environment.

"If the retirement age is simply extended by law, as the labour community insists, it can be a great barrier and despair for young people who want to find a job," the Economic, Social and Labour Council said this month.

While South Korean law sets a retirement age of 60 or higher, most companies have fixed it at 60, the lowest possible. But the National Pension Service (NPS) only begins paying out at age 63 to 65, depending on dates of birth, and the pension only replaces a fraction of wages. South Koreans aged 65 or older form 18.4% of the population, up from 11.9% in 2013 and are projected to exceed 20% in 2025 and 40% in 2050, Statistics Korea says.

Meanwhile, the 44,000 strong Hyundai Motor (005380.KS) union, is also demanding extension of the retirement age, this time to 64 from 60 and is set to unveil plans for possible strike action on Wednesday.