"Even a couple earning 4.7 million won a month gets 560,000 won each... It feels unfair that we get nothing from the Basic Pension" [Retiree X’s Plan]

Input: 2026-04-04 08:30:00

Updated: 2026-04-04 08:30:00

Nothing is more reassuring in old age than having a job.

However, if your assets exceed a certain level, many people are excluded, which means your pension also needs careful planning. The photo shows elderly people looking for jobs./Yonhap News Agency [The Financial News] "Some couples even go through sham divorces to avoid reductions in their Basic Pension. " These were the words that President Lee Jae-myung personally posted on his social networking service (SNS) account on March 16.It is a strange paradox created by the system: to receive the old-age benefit properly, couples feel they must at least sever their marital status on paper. With the population aged 65 and older now exceeding 10 million, the president’s decision to tackle this issue head-on has turned the Basic Pension into a hot policy topic.

This situation arises because the system penalizes couples who grow old together "until their black hair turns white"—in Korean, this is called "haero," meaning to age together as a married couple. Under the current Basic Pension rules, when both spouses receive the benefit, each person’s amount is reduced by 20%.

As a result, a single-person household can receive up to 349,700 won, but if both spouses receive it, each gets only 279,760 won, for a combined total of 559,520 won. You can receive far more from the Basic Pension than you might think "My parents own an apartment and already receive a National Pension Service (NPS) benefit.

There’s no way they’d qualify for the Basic Pension too, right?" This kind of question from adult children can be either right or wrong. The eligibility thresholds for 2026 are much more generous than many expect.

The Basic Pension is paid to the bottom 70% of seniors aged 65 and over by income. The key metric is "assessed income," which is the value obtained by applying a formula that combines actual income and assets.

If your assessed income falls below the threshold, you qualify. 952 million won a month or less.

Basic Pension income thresholds / Graphic by Reporter Jeong Gi-hyun These thresholds have risen every year. 47 million won in seven years, an increase of nearly 80%.

952 million won. 6 times the single-person threshold.

How much can you earn and still qualify? — The structure of assessed income The higher thresholds reflect a policy decision to account for inflation and rising income among seniors. The Basic Pension is not calculated on simple income, but on assessed income, which is the sum of monthly income after evaluation and the income converted from assets.

To encourage continued work, the system counts income at a level lower than what people actually earn. △ Income that is generously deducted if you work The most notable feature on the income side is the earned income deduction.

16 million won a month is excluded, and then 30% of the remaining amount is deducted again. 7 = 588,000 won" is counted as income.

The deduction is intentionally large to encourage seniors to stay in the workforce. However, because the deduction is so generous, it can lead to paradoxical outcomes.

If you have only earned income and no assets, then in theory you could earn more than 4 million won a month and still have your assessed income fall below the eligibility threshold. Business income, rental and interest income from assets, and public transfer income such as benefits from the National Pension Service (NPS) are also included in the income evaluation.

952 million won. 6 times the single-person threshold.△ Assets are calculated much more strictly On the asset side, the calculation combines general property, financial assets, and debts. The formula is [{(general property − basic property deduction) + (financial assets − 20 million won) − debts} × 4% per year] ÷ 12.The value of your home (based on the officially assessed price) and land is treated as general property, and a certain amount is deducted depending on the region. 5 million won For example, suppose you own an apartment in Seoul with an officially assessed value of 400 million won.

After subtracting the 135 million won basic deduction for Seoul, the remaining 265 million won is multiplied by 4% per year and then divided by 12, which converts to about 880,000 won a month in income. Any outstanding debt would be deducted from this amount.

Financial assets such as deposits, savings, stocks, and insurance are treated similarly after a 20 million won deduction. You should also be careful with cars: if a vehicle is worth more than 40 million won, the entire value is counted as an asset (except for cars over 10 years old, vehicles used for business, and vehicles for persons with disabilities).

There is one more important point. If you or your spouse receives a Public Officials Pension, Military Pension, Teachers' Pension, or Pension for Employees of Special Post Offices, you are not eligible for the Basic Pension.

Four out of ten seniors live in poverty — yet the system may be too broad The reality facing those who truly need the Basic Pension is harsh. 8%, the highest level among member states of the Organisation for Economic Co-operation and Development (OECD).

952 million won. 6 times the single-person threshold.On paper, many seniors are working. 3%).9% receive some form of pension, their average monthly benefit is only 695,000 won. The problem is that as the system has expanded, the poorest seniors who truly need the money and middle-class seniors who do not are now receiving almost the same amounts.4 trillion won, making it the largest single welfare program in the country. Three household stories — who qualifies and who does not? The logic becomes clearer when you look at actual calculations.

Consider three example households. ▶ A dual-income couple in their mid-60s living in Seoul: Mr.Still, the Basic Pension of about 340,000 won a month is a reliable lifeline for many seniors. Even if you work, the system calculates your assessed income conservatively so that you can keep your eligibility.

and Mrs. 7 million won a month — and they still receive the Basic Pension The husband works as a security guard at an apartment complex and earns 2 million won a month, plus 900,000 won from the National Pension Service (NPS).5 million won a month, and she also receives 300,000 won from the NPS. 7 million won.
They also own an apartment in Seoul with an officially assessed value of 600 million won and have 80 million won in bank deposits. At first glance, they seem far from Basic Pension eligibility.
But the calculation tells a different story. 16 million won per person is deducted first, and only 70% of the remaining amount is counted.

5 million won becomes 238,000 won. 026 million won.

Assets are also converted by deducting a base amount and then applying 4% per year divided by 12.

55 million won a month.

For deposits, after the 20 million won deduction, the remaining 60 million won converts to about 200,000 won a month.

75 million won.

776 million won.

952 million won.

Both spouses qualify for the Basic Pension.

▶ A fully retired couple in their 70s living in Seoul: Mr.

and Mrs.

Lee No income at all — yet they do not qualify for the Basic Pension This couple, both aged 70, also live in Seoul.They are completely retired and have no income whatsoever.3 billion won, and they have 50 million won in bank deposits.Their income evaluation is zero.The problem lies in their assets.165 billion won.883 million won a month.
For deposits, subtracting 20 million won from 50 million won leaves 30 million won, which converts to about 100,000 won a month.
983 million won.
952 million won threshold by 31,000 won.As a result, this couple cannot receive the Basic Pension even though they have no monthly income at all.

▶ A "typical" couple in their late 60s with average income and assets: Mr.and Mrs.3 million won from the NPS.The wife has no income.Their home is an apartment in Seoul with an officially assessed value of 855 million won, and they have 30 million won in deposits.Up to this point, their assets are smaller than those of the second example household.952 million won threshold So they qualify.
However, this couple owns an imported car worth 54 million won, a gift from their child.
If a car is worth more than 40 million won, is less than 10 years old, and is not used for business, its full value is counted as an asset.In this case, 54 million won × 4% per year ÷ 12 adds about 180,000 won a month.

116 million won.That is 164,000 won above the threshold.A single car turns a 16,000 won margin below the threshold into an excess of 164,000 won.This is why people say, "If your child buys you an expensive car, your Basic Pension may be cut off." When the car is registered in both names or is deemed a de facto gift, it can be included in the calculation.These three examples capture the paradox at the heart of the Basic Pension controversy.7 million won in monthly income qualifies, a couple with zero income does not, and eligibility can hinge on a single car.
952 million won. 6 times the single-person threshold.This is why the government has begun reviewing a reform of how assessed income is calculated.What would change if the system is reformed? The government and political parties are working on supplementary measures to address what they call the "trap of averages.
952 million won. 6 times the single-person threshold." In a plan submitted to the National Assembly of the Republic of Korea, the Ministry of Health and Welfare (MOHW) announced that it intends to gradually reduce the current 20% reduction rate applied to low-income elderly couples in the bottom 40% of the income distribution.The rate would be cut to 15% by 2027 and to 10% by 2030.
952 million won. 6 times the single-person threshold.In addition, within the Health and Welfare Committee of the National Assembly, a bill has been introduced and is under discussion that would completely abolish the couple reduction over a three-year transition period.If the couple reduction is eased or eliminated, the amount that beneficiary couples actually receive will immediately increase.
If the reduction rate is cut from 20% to 10%, each person would receive 90% of about 349,700 won, or roughly 314,730 won.Together, the couple would receive 629,460 won.If the reduction is abolished entirely, each spouse would receive 349,700 won, for a combined 699,400 won.
952 million won. 6 times the single-person threshold.However, President Lee Jae-myung has also raised the concept of "the progressive welfare principle of thicker support for the poor," which introduces another variable.

Currently, as long as you are in the bottom 70% by income, you receive almost the same amount regardless of your asset level.

If future increases are concentrated on poorer seniors under this principle, then even among beneficiaries, the amounts received could diverge.

In effect, the Basic Pension would shift away from being a purely universal benefit.

Status of National Pension beneficiaries / Graphic by Reporter Jeong Gi-hyun Better than the Basic Pension is preparing in advance Ultimately, the best approach is to prepare for old age well in advance.

The Basic Pension continues to expand.

The thresholds are rising, and the eligible population is growing.

If the couple reduction is eased, benefit amounts are likely to increase further.

But the structure is clear.

The Basic Pension is a floor designed to guarantee a minimum standard of living.

Your actual standard of living in retirement is determined by the National Pension Service (NPS) and the assets you have accumulated on your own.

Still, the Basic Pension of about 340,000 won a month is a reliable lifeline for many seniors. Even if you work, the system calculates your assessed income conservatively so that you can keep your eligibility.The average NPS benefit is around 600,000 won a month.However, more than 1 million people now receive at least 1 million won, and over 91,000 people receive 2 million won or more.

This shows that benefit levels are diverging significantly depending on contribution periods and amounts paid in.

The Basic Pension is open to everyone who meets the criteria, but the real differences in old age ultimately come from the pensions you have built up in advance.

The old equation "retirement equals withdrawal from life" is breaking down.

In an era when average life expectancy is 83, Generation X is entering full-scale retirement, and the very concept of retirement is being redefined.Their stories of a "second act" in life are collected in [Retiree X’s Plan] which is published every Saturday morning for our readers.Subscribe to the reporters’ page to receive it conveniently.

kkskim@fnnews.com Kim Ki-seok, Seo Young-jun Reporter

· This article has been translated by GripLabs Mingo AI.

원문보기 (View Original Korean Article)

NEWS Top 10