Politics · South Korea · 3 hrs ago
Study finds Korea's basic pension exceeds benefits after 10 years of contributions
A study by a researcher at South Korea's National Pension Research Institute found that 10 years of National Pension contributions can bring a smaller monthly payment than the basic pension.
The comparison uses an average earner's estimated National Pension benefit and the 2026 basic pension amount, which is funded through taxes.
The basic pension is paid to people aged 65 and over whose income falls within the lower 70% of older people.
The study estimates that 99.4% of contributors will have paid in for at least 10 years by the end of mandatory coverage at age 59.
It says lowering the minimum contribution period to five years would add few new recipients, while raising it to 15 years would also leave a small share below the threshold.
The researcher argues that the basic pension's broad reach needs review, suggesting its eligibility range could be narrowed or payments varied according to whether people receive the National Pension.
The study warns that the current payment gap could weaken trust in the pension system; it does not set out a timeline for any changes.
A study found that Korea’s basic pension payment is slightly higher than the estimated national pension benefit for an average earner who contributes for the minimum 10 years.
The report applied a 43% replacement rate under the National Pension Act revised in April 2025.
For 2026, the basic pension’s standard monthly amount is 349,700 won, equal to 10.95% of the average monthly income measure used in the study.
The report warned that this gap could weaken trust in the pension system and discourage people from paying contributions.
It also said 99.4% of contributors are estimated to have completed at least 10 years of contributions by the end of mandatory enrollment at age 59.
- Who
- A study by Kim Hyeong-su, an associate research fellow at the National Pension Research Institute, examined the pension system.
- What
- It found that the basic pension amount exceeds the estimated benefit for an average earner after 10 years of National Pension contributions.
- When
- The report was presented on November 3; the figures include 2026 pension amounts.
- Where
- South Korea.
- Why
- The difference arises because the estimated National Pension benefit after the minimum contribution period is slightly below the basic pension’s standard amount.
This story does not have two clearly opposing sides.
The National Pension Act was revised to set a 43% income replacement rate.
Kim Hyeong-su’s report on pension coverage by contribution period was presented in Pension Forum.
The basic pension’s standard monthly amount was 349,700 won.
- Minimum contribution period
- 10 years, or 120 months
- Estimated National Pension benefit
- 10.75% of the average monthly income measure for an average earner after 10 years of contributions
- Basic pension amount
- 349,700 won per month in 2026
- Average monthly income measure
- 3,193,511 won in 2026
- Estimated contributors with 10 or more years
- 99.4% by the end of mandatory enrollment at age 59
- Basic pension eligibility
- People aged 65 or older in the bottom 70% by income
What people are saying
People who paid the National Pension are the only fools in this world
Just give me back at least the principal of what I have paid so far