Sharp Increase in Split Pension Recipients... Rising Twilight Divorces
Average Monthly Amount Received Remains Around 240,000 Won
The number of beneficiaries sharing the national pension of divorced spouses (ex-husbands or ex-wives) has surged sevenfold in 10 years. The average monthly amount received was about 240,000 KRW.
According to the National Pension Service on the 26th, the number of beneficiaries receiving so-called 'divided pension' reached 69,437 as of January this year. Compared to 4,632 in 2010, this is nearly a 15-fold increase. After surpassing 20,000 for the first time in 2017 with 25,302 beneficiaries, the number has increased by more than 10,000 annually. By gender, women accounted for 61,507 (88.6%) and men 7,930 (11.4%).
Divided pension is a pension system introduced in 1999 that allows a person who was married for more than five years and then divorced to receive a portion of the ex-spouse’s old-age pension if certain conditions are met. It aims to guarantee a certain level of retirement income by recognizing the mental and material contributions made during the marriage, even if the person did not contribute to the national pension due to childcare and housework at home.
The increase in divided pension beneficiaries is believed to be due to the steady rise in so-called 'late-life divorce' each year. Late-life divorce refers to couples who divorce after more than 20 years of marriage. According to Statistics Korea, in 2021, late-life divorces with a marriage duration of over 30 years accounted for 17.6% of all divorces, which is 2.2 times higher than 10 years ago.
However, the amount of divided pension is not very large. As of January this year, the average monthly amount received was only 237,830 KRW. By monthly amount received, the largest group was those receiving less than 200,000 KRW, totaling 36,833 people.
Following that, 22,686 received between 200,000 and 400,000 KRW, 7,282 between 400,000 and 600,000 KRW, 2,181 between 600,000 and 800,000 KRW, 352 between 800,000 and 1,000,000 KRW, 68 between 1,000,000 and 1,300,000 KRW, 26 between 1,300,000 and 1,600,000 KRW, and 9 between 1,600,000 and 2,000,000 KRW.
Possible upon meeting certain conditions... 'Substantial marital relationship' must be recognized
To receive divided pension, the divorced spouse must have the right to receive an old-age pension (the general form of national pension received upon reaching the eligible age), and the marriage duration with the divorced spouse must be at least five years.
Also, both the applicant for the divided pension and the divorced spouse must have reached the old-age pension eligibility age (61 to 65 years depending on birth year for those born after 1953; currently 63 years old in 2023).
Once the right to receive divided pension is secured, the beneficiary can continue to receive it regardless of remarriage or if the divorced spouse dies and the old-age pension right is terminated or suspended. However, if the divorced spouse dies before the right to receive divided pension is obtained, causing the old-age pension right to be extinguished, or if the divorced spouse receives disability pension due to disability, the divided pension cannot be received.
Until 2016, the pension division ratio was uniformly 50:50 for pension assets accumulated during the marriage period, but since 2017, the ratio can be determined through agreement between the parties or by court decision. Only the pension corresponding to the marriage period is divided; for example, if the current pension is 800,000 KRW per month and the amount corresponding to the marriage period is 700,000 KRW, it is divided as 350,000 KRW each per month.
Since mid-June 2018, periods recognized as having 'no substantial marital relationship,' such as due to separation or living apart without sharing household or childcare responsibilities, are excluded from the divided pension calculation.
Periods recognized as having no marital relationship by agreement between the divorced parties or by court judgment are also excluded. The rationale is that including periods during which the couple did not participate in married life in the pension division is unfair.
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