Lee Gae-ho “Number of Early National Pension Recipients Increasing Every Year”

670,000 in 2020 → 910,000 in September This Year, 35% Increase
"Policy Alternatives Needed for Income Gaps and Benefit Intervals"

Lee Gae-ho 의원

The number of early pension recipients who withdraw their hard-earned National Pension early is increasing every year, raising urgent calls for countermeasures.

According to the National Assembly audit data submitted by Lee Gae-ho, a member of the Democratic Party of Korea (Damyang, Hampyeong, Yeonggwang, Jangseong), the number of early pension recipients, which was 673,842 in 2020, reached 915,039 as of June this year, an increase of 241,197 (35.7%). Pension payments also rose from 4.3651 trillion won in 2020 to 6.3874 trillion won last year, with 3.6973 trillion won paid out by June this year.

The number of new early pension applicants is also surging. In 2020, there were 51,883 early pension applicants, but this more than doubled to 112,031 last year.

Early pension receipt occurs when individuals stop working and have no income to contribute to the pension, thus receiving payments 1 to 5 years earlier than the usual starting age. However, the pension is reduced by 6% annually, so receiving it 5 years early results in a 30% reduction. Over the past four years, the average early pension receipt period has ranged from 26 to 32 months, with an average reduction rate of 13 to 16%.

Rep. Lee stated, “The increase in early pension receipt is due to the economic situation caused by the income gap after retirement and the interval until pension receipt,” adding, “Since extending the retirement age is a societal issue that requires comprehensive review and cannot be implemented immediately, the National Pension Service should come up with policy alternatives to bridge this gap.”

He also added, “Reducing early pensions by 6% annually is an excessive disadvantage, and improvements are needed.”