National Pension Reduction Threshold Raised to 5.19 Million Won... Paying Additional Contributions Before Premium Increases May Be Advantageous

The direction of reforms and specific numerical changes for old-age security systems, including the National Pension and Basic Pension, have been revealed. Following recent government announcements and system changes, the eligibility, amounts, and advantages depending on the timing of insurance premium payments are expected to change.

Additional 30,000 Won for Bottom 30% of Basic Pension Recipients... Eligibility Maintained at 70%

According to the government's Basic Pension reform announcement, the eligibility for Basic Pension will maintain the current level of the bottom 70% of income, but the structure will change to differentiate the payment amounts. According to the explanation by CEO Song Yeong-uk in the video, those in the bottom 30% or below with low income will receive 380,000 won, which is 30,000 won more than before, and those in the bottom 45% or below will receive 309,000 won, which is 9,000 won more. Other segments will receive the existing 350,000 won. This applies a 'lower-heavy, upper-light' structure that provides more benefits to lower-income classes. However, due to the issue of financial burden caused by changes in the population structure, the possibility of a gradual reduction or abolition of the Basic Pension in the future may also be discussed.

National Pension Old-Age Pension Reduction Threshold Raised to 5.19 Million Won... Consideration Needed Before Additional Contribution Premium Increases

The threshold for the 'Old-Age Pension Reduction System,' where the pension amount decreases if income exceeds a certain level when receiving the National Pension, has also been relaxed. Previously, the pension began to be reduced if the monthly average income exceeded 3.19 million won, but after the revision, this threshold has been raised by 2 million won to 5.19 million won. Accordingly, the disadvantages for those whose pensions were being cut due to high income are expected to be partially resolved.

Meanwhile, as the National Pension premium rate is scheduled to be incrementally increased from the current 9% to 13% by 2033, a strategic judgment regarding the timing of 'additional contributions (chu-nap)' is required. The video analyzed that if 119 months of additional contributions are made, applying the 2026 rate (9.5%) would cost approximately 35.7 million won, but if the 2033 rate (13%) is applied, the cost increases by about 13 million won to approximately 48.85 million won. However, it was also mentioned that whether it is advantageous or disadvantageous may vary depending on whether the additional contribution is made by full-time housewives or the unemployed with low income, rather than salaried workers with income, or during a period when income has decreased after retirement.

Expansion of Childbirth and Military Service Credits... 12 Months of Enrollment Period Recognized Starting from the First Child

The credit system that increases the pension enrollment period has also been strengthened. In the case of the childbirth credit, previously 12 months of enrollment period were added starting from the second child, but it has now changed to a method where 12 months are recognized starting from the first child. Additionally, the upper limit on the enrollment period, which was previously limited to a maximum of 50 months depending on the number of children, has been abolished, creating a structure where the pension amount increases the more children are born. The military service credit has also seen its recognized period increased from the existing 6 months to 12 months, and support for low-income earners has been expanded.