"If You Have an Apartment and Receive a Pension, Moving into Senior Housing Is Not Just a Dream" [Senior House]

Elderly People Face High Monthly Rent Burden Even If They Want to Move to Senior Housing

Housing Pension Deposits Millions of Won Monthly into Senior Accounts

"My friends keep asking me if it's nice to live there. When I say, 'It's nice, so you should come too,' they wave their hands, saying they can't afford the rent. The place I live in has relatively lower rent compared to others, around 2 million won per month, but for elderly people without income, this is still an enormous amount."

This is what Mr. Kim Sang-su (81), who lives in a senior welfare housing in Seoul, said. Most seniors are in the same situation as Mr. Kim's friends. Due to high rent, many dream of moving into senior welfare housing but cannot afford it. The housing pension is the only source of income that deposits several million won monthly into the bank accounts of these middle-class elderly. It is also the most commonly cited stable funding method by senior welfare housing operators.

On the 22nd, Asia Economy calculated the housing pension that late-stage elderly aged 75 and above can receive through the Korea Housing Finance Corporation (HF) (based on general housing, lifetime payment, fixed amount). For an apartment valued at 300 million won, the monthly pension can be up to 1.11 million won. For a 600 million won apartment, it is 2.22 million won, and for a 1 billion won apartment, up to 3.54 million won per month. Seniors receiving housing pensions can also earn "double income" monthly from both HF and tenants by renting out their previous homes after moving into senior welfare housing. If seniors choose the "trust type" when subscribing to the housing pension, they can also receive monthly rent with a deposit.

Still, moving into ultra-high-end senior welfare housing with deposits of 1 to 2 billion won and monthly rent of 3 to 5 million won is impossible. However, some recently built or planned private senior welfare housing with reduced prices is worth considering. In December last year, a senior welfare housing was established in Pyeongchang-dong, Jongno-gu, Seoul, with a deposit of 30 million won and monthly rent of about 3 million won. If you pay an additional 300 million won deposit, the monthly rent decreases by about 1 million won. The senior welfare housing to be built in Wirye New Town next March plans to set move-in costs similar to the actual transaction prices of nearby apartment rents and leases. For seniors who own an apartment in major areas of Seoul and receive monthly pensions, moving into senior welfare housing is not just a dream.