Additional Benefit as a Family Allowance Beyond the Basic Pension Amount
For Those Obligated to Support Family Members Even in Old Age
The government operates a so-called ‘family pension’ system for those who have the obligation to support their families even at an advanced age, but it is known that many beneficiaries are unaware of this.
The National Pension ‘Dependent Family Pension (Family Pension)’ system is an additional pension with the nature of a family allowance, separate from the basic pension amounts such as old-age pension, disability pension, and survivor’s pension. This system has existed since the launch of the National Pension in 1988.
If a National Pension beneficiary has a spouse, minor or disabled children (disability grade 2 or higher), elderly (63 years or older) or disabled parents (including spouse’s parents), additional payments are made.
The eligible age for receiving the family pension is adjusted according to the increase in the National Pension payment age. As of this year, the payment start age is 63, but it will increase by 2 years to 65 in 2033, ten years from now.
The dependent family pension is paid according to the number of family members supported by the pension beneficiary. It is paid as a fixed amount regardless of the beneficiary’s National Pension contribution period.
This year, the family pension is about 25,020 KRW per month (303,300 KRW annually) for a spouse, and about 16,680 KRW per month (201,600 KRW annually) for parents and children. For a 65-year-old beneficiary living with a spouse and elderly mother who depend on them for livelihood, they can receive an additional pension of about 40,000 KRW per month, totaling approximately 480,000 KRW per year.
Also, like the National Pension, which reflects the previous year’s inflation rate in its benefit increases every year, the family pension is adjusted annually based on the previous year’s inflation rate.
To receive the dependent family pension, the eligible beneficiary must apply in person at the nearest National Pension Service branch. When applying, it is essential to submit family relationship certificates along with documents proving that the dependent family members rely on the applicant for their livelihood.
However, registration does not guarantee lifelong pension payments. If the livelihood support relationship is severed during the pension period, or if the beneficiary reaches the required age or there is a change in disability grade, resulting in the loss of eligibility as a dependent family pension recipient, they are automatically excluded from the dependent family category.
Recently, considering the increasing trend of National Pension beneficiaries aged 65 and older, there have been opinions to gradually abolish the parent family pension for new National Pension beneficiaries (excluding survivor and disability pensions) and to abolish the spouse family pension at a certain point. Japan and the United Kingdom are also abolishing family pensions.
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