Today, we will look at the eligibility of the basic old-age pension.As we enter an aging society, various support systems are gradually diversifying.I hope that you will be eligible for the basic old-age pension as much as you know with this posting today.Let’s take a closer look at the basic old-age pension targets and the amount of money they receive for a stable retirement life.In 2022, the basic old-age pension was raised a little more based on the payment target. I’ll look into it in more detail.
basic pension eligibility
application for basic pension
difference between basic pension and old-age pension
Many people don’t know the difference between the basic pension and the old-age pension.The difference between the basic pension and the old-age pension can be seen as eligibility. In the case of the basic pension, Koreans aged 65 or older must live in Korea and earn less than 70% of their income, and it is a welfare service provided by the country even if they do not subscribe to the national pension.
In the case of the old-age pension, the national pension has been registered for at least 10 years and can only be received by paying the national pension.
basic pension eligibility
basic pension recipients
General property, financial income, earned income, and other income must be calculated as monthly conversion based on married households and must be 65 years of age or older, which is less than 70% of income.
a resident of South Korea
65 years of age or older as of of listed in the registration under age .
As of 2021, a person who is less than 2.74 million won based on income for married couples or 1.69 million won based on single households.
Civil Service Pension, Private School Staff Pension, Military Pension, Special Post Office Pension Exceptions
Spouse who receives the above special pension is also excluded from the basic pension.
Those aged 65 or older with an income recognition of 70% or less
Monthly income of KRW 1,800,000 or less based on single households
Monthly income of KRW 2,880,000 or less based on married households
basic pension eligibility
2022 Pension Standards
Up to 307.500 won per month.
Usually, if you do not receive the National Pension Service, the monthly salary of the National Pension Service is less than 461,250 won, the National Pension Service is not received, or the monthly salary of the National Pension Service is less than 461,250 won, you are paid.
selection base amount
The selection criteria are announced reflecting the income property level, living conditions, inflation rate, and housing disclosure price of elderly households, and the selection criteria in 2022 were set at 1.8 million won per month for households without spouses and 2.88 million won per month for households with spouses.
Pension Eligibility
is recognized income?
Income recognition is calculated by subtracting various deductions such as general property deduction, earned income deduction, and financial property deduction from the sum of household income and property (house, automobile, etc.) into income.
Pension Eligibility
[Business income]
sum of other business income and rental income
– Other business income: Income from wholesale and retail, manufacturing, agriculture, fishing, forestry, and other businesses
– Rental income: Income arising from the rental of real estate, movable property, rights, and other property
[Property income]
sum of interest income and pension income
Interest income: Income generated by interest and dividends or discounts on deposits, installment savings, stocks, and bonds
-Pension income: Income generated regularly by private pensions and pension savings
[Official transfer income]
– Public transfer income: Various allowances, pensions, benefits, and other money and valuables regularly paid in accordance with the provisions of various laws and regulations.
(National Pension, Public Officials Pension, Military Pension, Private School Teachers’ Pension, Industrial Accident Compensation)
,However, money and valuables received as lump sum are calculated as property.
[Free rental income]
– Free rental income: Amount recognized as income corresponding to the rent for the principal or spouse living in a high-priced house owned by the child.
– If your or spouse’s resident registration indicates that your home address is in the name of your child and the market price is more than 600 million won, an annual income of 0.78% will be applied.
application example
standard housing market price 6hundred million won 7hundred million won 8hundred million won 9hundred million won 10hundred million won 15hundred million won 20hundred million won
free rental income 39ten thounsand won 45.5ten thounsand won 52ten thounsand won 58.5ten thounsand won 65ten thounsand won 97.5ten thounsand won 130ten thounsand won
The year 2022
monthly income conversion of property
= [{(general property – basic property 1) + (financial property – 20 million won) – debt } × 0.04 (income conversion rate of property, 4% per year) 12 12 months] + Value of luxury cars and membership 2)
1) Amount of basic property by region
basic pension eligibility
2) Luxury cars (more than 3,000cc or more than 40 million won) and membership rights shall be subject to their value.
[Luxurious car]
If you have a car, van, or two-wheeled vehicle worth more than 3,000cc or more than 40 million won, you will be excluded from the basic property deduction and a 100% monthly income conversion rate will be applied.
However, in the case of calling it a vehicle that is over 10 years old or a vehicle that cannot be operated due to seizure, etc., 4% per year, which is the income conversion rate of general property, is applied.
The following automobiles are excluded from the property calculation (only one vehicle):
Automobiles owned by persons of national merit, etc., who have been judged to have a different grade under the Act on the Honorable Treatment and Support of Persons of National Merit, etc.
Automobiles owned by persons with disabilities registered under the Welfare of Persons with Disabilities Act (no disability rating)
Automobiles that are not taxed pursuant to Article 4 of the Restriction of Special Local Taxes Act.
basic pension eligibility
[Membership card]
Membership under Article 6 of the Local Tax Act
golf membership
riding membership
condominium membership
comprehensive sports facility membership
yacht membership
* The above membership does not deduct the basic property, and the membership value is applied at an income conversion rate of 100% per month. (Reflecting the standard market price)
기타Guidance on other (gift) property
Other (gift) property refers to property donated to another person or property recognized as a gift.
If a property has been donated or disposed of after July 1, 2011, the amount deducted from the value of the property (standard market price of the local tax law) is calculated as other (gift) property and included in the calculation of the recognized income.
* Debt repayment, medical expenses, educational expenses, funeral expenses, wedding expenses, alimony and child support payments will be deducted when calculating other (gift) property.
basic deduction
The basic deduction for earned income is calculated by deducting 1.03 million won per month.In addition, the natural consumption amount excluded from other gift companies is 2,097,351 won for households without spouses and 2,560,540 won for households without spouses.
135 million won in big cities.
85 million won for small and medium-sized cities.
72.5 million won for farming and fishing villages.
Basic Old Age Pension Receipt in 2022
In the case of receiving the basic old-age pension, the inflation rate is reflected every year and changes little by little every year.In 2022, you can receive it at an amount that reflects 0.5% of consumer inflation.Reflecting the 0.5% inflation rate, single households will receive up to 301,500 won and married households will receive up to 483,000 won in 2022.
application method for basic old-age pension
You can apply for the basic old-age pension by visiting the eup, myeon, dong office, or the branch of the National Pension Service in the jurisdiction of your address, or you can apply online on the website for welfare.The application period is not set, and you can apply throughout the year, and if you meet the conditions, you can apply one month before you turn 65.
basic pension eligibility
1.Preparation Form
<Basic Borrowings>
When applying for the identity: ID (Driver’s license or resident registration card, welfare card, passport, etc.)
When applying by proxy: You need the applicant’s ID card and the applicant’s power of attorney.
It is recommended that you contact the organization you visit separately for the power of attorney form before you leave.
<Additional belongings>
A copy of the bankbook to receive the basic pension (account under your name).
★ If both couples receive a basic old-age pension, they can get consent from both couples and receive it in one account at a time.
★ If you have a spouse, you can check your spouse’s property.Therefore, you must bring your spouse’s consent to provide financial information.
★ We will keep the lease/monthly rent contract if applicable.
★Don’t forget that if you can’t check your income and property, the public official in charge can request additional documents!
Apply online for basic old-age pension (Welfare Homepage)
basic pension eligibility
If you go to the website for welfare and mouse-up the service application, you will find “application for welfare benefits.”Please click on this part.Then log in through simple authentication.Then, check to apply for the “Basic Pension” at the bottom of the welfare benefit application screen, go down to the bottom, save it, and press the next step.You can apply for a pension according to the following procedure.
basic pension eligibility
I think it would be easier for the elderly to visit the dong office in person and apply, but I hope you don’t check the required documents when you apply for a visit.
5. Required documents for applying for basic old age pension
basic pension eligibility
The documents required to apply for the basic old-age pension are detailed on the website, and you must have your ID card, a copy of your account to receive the pension, and your spouse’s consent to provide financial information.
old-age pension
In order to receive the old-age pension, the subscription period of the national pension must be at least 10 years.
The age of receipt varies by year of birth, so you need to check when you can receive it.
Born 1953-1956 (61 years old) 1957-1960 (62 years old) 1961-1964 years old (63 years old)
It is available from 1965 to 1968 (64 years old) and from 1969 (65 years old).
The amount of old-age pension benefits varies depending on the amount paid within the pension subscription period and the payment period.
Check out the National Pension Service website below.
https://www.nps.or.kr/jsppage/info/easy/easy_04_02.jsp
**Suspension of payment of old age pension**
Although you are old enough to pay your old pension, you can postpone the supply and demand.The deferred pension will increase by 7.2% per year (0.6% per month).Pension benefits increase by 7.2% after a year, 14.4% after two years, 21.6% after four years, 28.8% after five years, and 36% after five years, so you can consider delaying the supply and demand if you have time to retire.
**Early Age Pension**
55 years old with a subscription period of more than 10 years.If you don’t have any income among those over the age of 60, you can receive a pension even if you apply before the age standard of the old-age pension.Early old-age pensions are received five years earlier, but the pension amount will decrease.If you want early receipt five years ago, you can get 70% four years ago, 76%, 82% three years ago, 88%, and 94% a year ago.
basic pension simulation
The target person is selected by calculating the income and property of the basic pension.However, it is not easy for an individual to calculate.Therefore, the government supports the service so that self-diagnosis can be calculated through simulated calculation of the basic pension.
basic pension exception
The National Pension Service’s income redistribution benefit calculation formula or the amount of national pension benefits should be considered.However, if the income level is high and income reversal prevention is applied, or if both couples receive pensions in consideration of the difference in living costs between single-person households and couples, the basic pension will be reduced by 20%.
The decrease in the effect of preventing income reversal is due to the difference in supply and demand among basic old pension recipients, and the difference in supply and demand between total income recognition and basic old pension recipients.10% of single-person and single-person households will be paid, and the minimum annual salary will be 20% if both couples receive it.