Elderly Living Alone Receiving Basic Pension with Monthly Income Below 2.13 Million Won

Keeping Up with the Times... Abolishing Engine Displacement Criteria for 'Luxury Cars'
Couples with Income Below 3,408,000 Won Also Eligible for Benefits

Starting this year, elderly single-person households with an income of 2.13 million KRW or less per month and couple households with an income of 3.408 million KRW or less can receive the Basic Pension. Compared to last year, the income threshold increased by 110,000 KRW for single-person elderly households and by 170,000 KRW for couple households.

On the 1st, the Ministry of Health and Welfare announced that it had decided the Basic Pension eligibility criteria for next year as such. The Basic Pension eligibility criteria refer to the amount announced by the Minister of Health and Welfare, considering income and property levels, living conditions, inflation rate, etc., so that 70% of elderly people aged 65 or older become Basic Pension recipients.

If the recognized income amount, which sums earned income, pension income, general property, financial assets, debts, etc., is below the specified amount, one can receive the Basic Pension.

This year’s eligibility criteria amount increased by 5.4% compared to last year. It was 110,000 KRW higher for single-person households and 176,000 KRW higher for couple households. This increase reflects a 10.6% rise in the average income of the elderly, with earned income rising by 11.2% and public pensions by 9.6%.

However, due to a significant drop in the officially announced land prices last year, the average price of houses owned by the elderly fell by 13.9%, causing the increase rate of the eligibility criteria to fall short of the income growth rate.

Additionally, the Ministry of Health and Welfare decided to abolish the engine displacement criterion in the standards for luxury cars. Previously, vehicles with an engine displacement of 3000cc or more or a vehicle price of 40 million KRW or more were considered luxury cars, but with the recent increase in eco-friendly vehicles such as electric cars regardless of engine displacement, this standard was deemed unrealistic.

Following this change, elderly people owning vehicles with an engine displacement of 3000cc or more can receive the Basic Pension if their recognized income amount is 2.13 million KRW or less.

The number of Basic Pension recipients in 2024 is expected to be about 7.01 million, an increase of approximately 37.9% compared to 4.35 million in 2014. The related budget is expected to increase about 3.5 times, from 6.9 trillion KRW to 24.4 trillion KRW.

Meanwhile, the Basic Pension can be applied for and received directly at administrative welfare centers in towns, townships, and neighborhoods nationwide regardless of the applicant’s address jurisdiction, at the National Pension Service branch offices, or through the Ministry of Health and Welfare’s online portal site, Bokjiro.