The number of National Pension recipients who receive at least 1 million won a month has topped 1 million. It is the first time in 37 years since the National Pension system was launched in 1988.
According to the National Pension Service (NPS) on the 7th, as of the end of August this year, 1,004,147 people were receiving at least 1 million won a month from the National Pension. By gender, 942,271 were men and 61,876 were women, with men far outnumbering women.
By monthly benefit range: ▲ 1 million won to less than 1.3 million won, 435,919 people ▲ 1.3 million won to less than 1.6 million won, 262,130 people ▲ 1.6 million won to less than 2 million won, 221,705 people ▲ 2 million won or more, 84,393 people.
By type of benefit: ▲ old age pension recipients accounted for the vast majority at 989,176 ▲ disability pension, 2,845 ▲ survivors' pension, 12,126. The old age pension is the standard form of the National Pension paid when a National Pension subscriber reaches the age at which they can receive a pension.
Since first appearing in 2007, the number of old age pension recipients receiving at least 1 million won a month has continued to increase. In January this year, a subscriber receiving at least 3 million won a month appeared for the first time. As of August this year, 16 people were receiving at least 3 million won a month in National Pension benefits, and the highest monthly benefit was 3,185,040 won.
An official at the National Pension Service (NPS) said, "The reason this recipient received the highest amount is largely because the person enrolled in the early days of the National Pension system and paid premiums for more than 30 years, resulting in a long subscription period, and because the 'old age pension deferral system' was used to delay the initial eligible age for receiving the pension by five years to increase the amount." The old age pension deferral system allows a beneficiary, if desired, to postpone the start of receiving the pension by up to five years without paying additional premiums.
To qualify for the old age pension from the National Pension, a subscriber must pay premiums for at least 10 years (120 months). The longer the contribution period, the higher the amount of premiums paid, and the higher the income replacement rate, the larger the benefit amount.