This Year, 13,000 People to Receive 19.9 Trillion Won in Housing Pension

A(88), a resident of Goyang-si, Gyeonggi Province, recently eased a burden after subscribing to the housing pension. Having spent all the funds saved while helping with family business failures and recovering from illness, A had been struggling financially, but now can secure living expenses through the housing pension.

The Financial Services Commission and Korea Housing Finance Corporation (HF) announced on the 28th that from January to the end of November this year, a total of 13,000 people were supplied with housing pensions worth 19.9 trillion KRW. This represents an 18% increase in the number of subscribers and a 37% increase in the amount supplied compared to the same period last year (11,000 people, 14.5 trillion KRW).

In particular, in October, the eligibility criteria were expanded to include houses priced up to 1.2 billion KRW and total loan limits up to 600 million KRW, resulting in significant increases in both supply and benefits. The number of housing pension subscriptions in October and November averaged 1,300 per month, a 7% increase compared to 1,200 per month from January to September. The amount of new guarantees supplied also rose by 18% to 2.1 trillion KRW compared to 1.8 trillion KRW in the first nine months. The average monthly payment increased by about 17% to 1.71 million KRW.

The income improvement of housing pension subscribers was also significant. According to HF’s own survey, the average monthly income of households subscribing to the housing pension last year was about 1.19 million KRW (2nd decile out of 10), and the final income after receiving the housing pension (average monthly 1.48 million KRW) improved to 2.67 million KRW per month (5th decile out of 10), more than doubling.

Furthermore, this year, the subscription rate among the elderly in their 70s and 80s, who have relatively high poverty rates, increased. The average age of housing pension recipients this year was 72.1 years, up 1.2 years from 70.9 years last year, and the proportion of recipients aged 80 or older rose by 3.9 percentage points to 19.5% this year from 15.6% last year.

The Financial Services Commission stated, “In the context of an aging population, it is a crucial task for the housing pension system, which allows low-income individuals to continue their retirement life without worry by using their homes, to be established as a social safety net. We will continue to strive for institutional improvements and benefit expansions so that more citizens can receive greater benefits, paying attention to even the smallest details.”