"If the Recognized Income of Elderly Single-Person Households is 1.8 Million KRW or Less per Month Next Year, They Will Receive Basic Pension"

[Asia Economy Reporter Seo So-jung] The Ministry of Health and Welfare (Minister Kwon Deok-cheol) announced on the 30th that the selection criteria for the basic pension next year will be raised to 1.8 million KRW for single-person households and 2.88 million KRW for couple households, an increase of 110,000 KRW and 176,000 KRW respectively compared to this year.

Accordingly, for elderly single-person households, if the recognized monthly income is 1.8 million KRW or less from January next year, they will be eligible to receive the basic pension. Elderly people who were unable to receive the basic pension this year because their recognized income exceeded 1.69 million KRW will be newly eligible next year if their recognized income does not exceed 1.8 million KRW.

In addition, reflecting the increased minimum wage next year (2021: 8,720 KRW → 2022: 9,160 KRW), the earned income deduction amount has been raised from 980,000 KRW this year to 1.03 million KRW next year to ensure that working elderly people are not disadvantaged in receiving the basic pension due to the minimum wage increase.

The standard pension amount, which serves as the basis for calculating the individual basic pension amount, will be announced in January reflecting the 2021 nationwide consumer price fluctuation rate announced annually by Statistics Korea at the end of the year, in accordance with Article 5, Paragraph 2 of the Basic Pension Act.

Elderly people must apply for the basic pension at the local town or township office or community service center in their jurisdiction, and they can also apply through the nearest National Pension Service branch.

For those with mobility difficulties, the National Pension Service branch provides a 'visiting service' that accepts basic pension applications by visiting their homes upon request. Applications can also be submitted online through the Ministry of Health and Welfare’s internet portal, Bokjiro (www.bokjiro.go.kr).

Elderly people turning 65 next year can apply for the basic pension starting one month before their birth month. For example, an elderly person born in April 1957 can apply from March 1 and will receive the basic pension starting from April.

The number of recipients, which was 4.35 million when the basic pension was introduced in 2014, is expected to increase to about 6.28 million next year. The related budget, which was 6.9 trillion KRW at the time of introduction, will increase approximately 2.9 times to 20 trillion KRW next year.