Korean Job Discussion Forums

[Tiger Beer]

What are the benefits for long-termers when it comes to collecting a pension in Korea (years down the road)?

Just curious..

[Unposter]

As I understand, if you put in 10 years on the national pension or 20 years on the private school pension, you can get a pension for life.

[Wondering]

[Tiger Beer]

*bump*

This is one of those topics that no one ever seems to know about - but everyone should.

[Bondrock]

i get a pension statement once a year from the pension office. it details how much i will get when i retire and also how much i will get if i become disabled. anyone on the national pension (legally registered) should be receiving this notice. it comes automatically.

if you are not getting it --then contact the pension office and give your pension number. they can tell you exactly how much you will receive based on your current contributions.

Canadians can transfer pension benefits between Canada and Korea - two way transfer. So, if you retire in Canada you can move your credits there. If you retire in Korea you can move any existing Canada pension credits to Korea.

Canadians in Korea have 3 Korean pension options.
1) cash pay out
2) retire in Korea.
3) retire in Canada

Bond

[tob55]

Don't get your hopes up for big money, the average Korean pension is just over 300,000 KRW per month. Not enough to do anything with unless you have no other bills, which isn't likely...they are thinking of reforming the Korean pension plan to make it pay out more to future retirees...

[Wondering]

I have a pension number?? How do I know what it is? Can I just show up at the pension office and give them a thumb print or a little vial of blood and they look it up?

[Unposter]

As far as I understand, and I have to admit I am not 100% sure, but I believe you get at least 60% of your highest base pay. So, let's say the most you ever made was 2 million a month. Your pension would be 1.2 million a month for life. And, it is indexed to inflation.

You can also transfer your pension to U.S. Social Security or the Canadian equivalent if that is your cup of tea.

I don't think you'll start getting the Korean pension until your something like 63 which is better than 67 or older like it has become in the U.S.

You can also get a one time lump payment if you want. Take it at 30 or 40 or 50 and invest it for 10 or more years and you could have a nice sum if you are lucky.

Korean pension service is not all that bad.

[Tiger Beer]

[mrsquirrel]

One lump sum as long as you have paid in for 10 or 20 years?

[Typhoon]

Cut from 60% to 40% of average pay. This is from the Chosun ilbo about 2 weeks ago. Pension here is not that good.

http://english.chosun.com/w21data/html/news/200707/200707020032.html
Why Most Koreans Want Out of Nat'l Pension Plan
The Grand National and Uri parties have agreed to ratify revisions to the National Pension Act and a law guaranteeing basic welfare payments for the elderly. If the revised regulations are passed by the National Assembly, monthly pension contributions will remain at the present level of 9 percent of monthly salary, but payouts after retirement will decrease from 60 percent to 40 percent of a person�s average income.
The basic welfare pay for pensioners is to cover 70 percent of all Koreans over 65, or 3.5 million elderly Koreans, with the amount gradually increasing from 5 percent of the average income for people in a pension program -- slightly less than W90,000 (US$1=W938) -- to 10 percent by 2028. Next year, the first year the tax-funded basic welfare payment for the elderly goes into effect, a whopping W2.3 trillion is needed, rising to W37 trillion by 2028. The very government which cut pension benefits for retirees out of concern over the gradual depletion of the pension fund is now adding a greater tax burden on the public.

Yet that 40 percent pension is the maximum people can get only after they have paid their contributions for 40 years. The actual average period for Koreans to pay their premiums is just 21 years. The vast majority of people will end up getting a pension of just around 20 percent of their monthly salary. You can�t call that a pension: it�s small change or milk money.

With basic welfare payments for the elderly, there will be cases where people who paid more don�t get more. Suppose that A, who makes W2 million a month and pays W180,000 a month over 20 years, gets a monthly pension of W430,000. Now, it looks like the basic welfare payment for the elderly will be given to those whose income, including National Pension benefit, ranks in the bottom 70 percent, and the average monthly income of those 70 percent is expected to be around W500,000. As a result, A will get W70,000 a month in welfare payments to make up for the difference between the standard income of W500,000 and his W430,000 pension.

Now suppose B makes W1 million a month, pays W90,000 per month and gets a monthly pension of W310,000. That entitles B to the maximum W180,000 a month in basic welfare for the elderly. Combined with the monthly pension payment, B gets W490,000 a month. In the end, a person who paid W180,000 a month will get just W10,000 more per month than a person who paid W90,000 a month.

According to a recent opinion poll, 58.3 percent of respondents said they wouldn�t join the National Pension plan if it wasn�t mandatory. And just 26.1 percent said they would voluntarily join. Who in their right mind would want to join a pension plan and pay premiums if all they end up with is pocket money and distribution isn�t even fair?

[Unposter]

I was thinking the private school pension fund not the national pension but that is very interesting about the national pension.