Average Monthly Payment for New Housing Pension Applicants Decreases by 1.8% Starting March

Monthly Payments Decreased by an Average of 1.8% Compared to Last Year

No Change in Monthly Payments for Existing Subscribers and Customers Who Applied by the End of February

[Image source=Yonhap News]

[Asia Economy Reporter Sim Nayoung] The Korea Housing Finance Corporation announced on the 31st that it will adjust the monthly payments for new applicants of the Housing Pension starting March 1.

HF Corporation adjusts the monthly payments each year by reflecting the results of recalculating key variables of the Housing Pension, such as ▲housing price increase rate ▲interest rate trends ▲changes in life expectancy according to life tables, in accordance with the Korea Housing Finance Corporation Act, and after approval by the Housing Finance Operation Committee.

With this adjustment, the monthly payments for new Housing Pension applicants from March 1 will decrease by an average of 1.8% compared to before. This is because the recalculated key variables show a lower expected housing price increase rate compared to the previous year, while interest rates have risen and life expectancy has increased, all of which contributed to the decrease in monthly payments.

However, existing subscribers and those who apply by February 28 will continue to receive the previous monthly payments regardless of fluctuations in housing prices.

President Choi stated, "The Housing Pension has eased eligibility criteria, diversified pension receipt methods, and strengthened pension rights to support stable retirement for the public, and as a result, the cumulative number of subscribers has exceeded 100,000 since the product was introduced in 2007."

He added, "This year, we plan to actively promote institutional improvements such as expanding the eligible housing price for the Housing Pension from a publicly announced price of 900 million KRW or less to 1.2 billion KRW or less (an amendment to the Korea Housing Finance Corporation Act) to provide more robust support for the elderly in their retirement."

Those considering subscribing to the Housing Pension can contact the corporation before applying to receive detailed consultation about the pension amount.

Applications can be made by visiting a nearby corporation branch or through the corporation’s website or the Smart Housing Finance app.