Mediating Effect of Depression on the Relationship between Economic Activity and Economic Retirement Preparation among Korean Baby Boomers

With the first South Korean baby boomers having turned 65 in 2020, approximately 7.1 million are expected to reach old age by 2028, increasing the importance of retirement preparedness. Economic activity is often associated with better financial readiness for retirement, as it enhances household finances, improves quality of life, and mitigates psychological distress. However, few studies have explored how economic activity affects baby boomers’ retirement readiness, particularly through mediating factors such as depressive symptoms.This study examined the relationship between economic activity and economic retirement preparation among 1,080 South Korean baby boomers using data from the eighth wave of the Korean Longitudinal Study of Aging (KLoSA). Logistic mediation analysis was conducted using SPSS Process Macro Model 4. Economic activity (independent variable) was categorized as engaging in paid work (1) or not (0), whereas financial retirement readiness (dependent variable) was defined as participation in at least one public or private pension plan. Depression (mediator) was measured as a continuous variable, and the control variables included gender, household income, education, age, life satisfaction, and marital satisfaction.The findings showed that economic activity positively influences economic retirement preparation, which is mediated by reduced depression. These results highlight the dual benefits of economic activity in reducing psychological distress and enhancing retirement preparedness. This study underscores the importance of encouraging and supporting employment opportunities for baby boomers, as well as developing targeted education and policies to improve their financial and emotional well-being in retirement.