Convenient Account Setup for Pension Recipients
Exclusive Pension Deposits Only ? No Additional Deposits Allowed
As more people aged 60 and over are starting their own businesses after retirement, there has also been a notable increase in cases where they lose significant sums of money due to business failures. In addition, when factors such as illness or multiple debts are combined, this can ultimately lead to bankruptcy in old age.
The problem is that if an account is seized, pension payments can also be frozen. When National Pension funds are deposited into a seized account, the pension money is mixed with regular deposits and becomes subject to seizure as well. Of course, according to the Civil Execution Act, even if all deposits are seized, one can apply to the court to have the seizure lifted for up to 1.85 million won per month, which is the minimum monthly living expense. However, this method requires filing an objection with the court every month, and it also takes time to get the money returned to the account.
To prepare for such situations, there is a special account exclusively for National Pension recipients, known as the "National Pension Safe Account." This account is a seizure-protected account that only National Pension recipients can open. It was institutionalized in May 2010 to provide practical protection for pension rights. Creditors cannot seize funds in this account, and it is completely excluded from court seizure orders.
According to the National Pension Service, the number of recipients using the Safe Account has been increasing every year: 341,306 in 2022, 360,491 in 2023, and 396,486 in 2024. The number is expected to surpass 400,000 within this year.
Through this account, recipients can receive old-age pensions, survivor pensions, and disability pensions (grades 1 to 3) up to a maximum of 1.85 million won per month. If the monthly National Pension payment is 2 million won, the excess 150,000 won is deposited into a regular account. However, for lump-sum payments such as refund lump-sum or death lump-sum, the amount cannot be split; if the lump-sum exceeds 1.85 million won, the entire amount must be received in a regular account.
No funds other than the pension can be deposited into the Safe Account. Even the account holder cannot make additional deposits. However, there are no restrictions on withdrawals or transfers to other accounts, so payments such as credit card bills can be freely made.
The Safe Account can be easily opened at any of 22 financial institutions nationwide, including banks, post offices, mutual finance institutions (such as Nonghyup, Credit Unions, Fisheries Cooperatives, and Saemaeul Geumgo), and savings banks. After opening the account, recipients simply need to designate it as their pension payment account with the National Pension Service. Since preferential benefits such as waived transfer fees may vary by institution, it is advisable to choose the one that offers the most advantages for you.
A similar account exists for home pension recipients. Those receiving home pensions from the Korea Housing Finance Corporation can open a "Home Pension Guardian Account" to protect their pension. The operation of this account is identical to that of the National Pension Safe Account.
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