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michaelambling
Joined: 31 Dec 2008
Location: Paradise
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 Posted: Fri Jan 30, 2009 5:31 pm Post subject: How do you calculate pension benefits? |
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I'm trying really hard to understand how the Korean Pension system works. I've looked at their website (http://www.nps4u.or.kr/jsppage/english/scheme/scheme_03.jsp ), which gives the formula of how to calculate what your pension benefits will be if you retire in Korea.
Now, what confuses me is this:
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[A] is the average (the redistributive component) of the price-indexed average monthly income for the 3 years prior to pension payment.
※ Average monthly income is the average of Standard Monthly Incomes (SMI) of the all the mandatorily insured person (except for those exempted from contributions payment) as of December 31 each year.
[B] is the average amount of the SMI of an insured person during his/her insured period. This is the earnings-related element adjusted into the value of the year prior to pension payment. The revaluation is based on the fluctuation rate of A.
※ The Standard Monthly Income is the representative amount determined by classes based on the insured person's monthly incomes for calculating the contribution and benefit. |
What exactly is my SMI and how do I calculate it? If, for example, my monthly gross salary is 3million KRW, what would be my SMI? |
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Big Mac
Joined: 17 Sep 2005
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| Posted: Sat Jan 31, 2009 1:38 am Post subject: |
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It's very simple. You pay 4.5 per cent of your monthly salary into the pension fund. Your boss also pays 4.5 per cent. When you decide to leave Korea you can apply to get all that money back, as long as you are from Canada, the United States or Australia.
Just ignore the goobligok you read on the national pension website. It doesn't make any sense, as is with many things in Korea. |
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michaelambling
Joined: 31 Dec 2008
Location: Paradise
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| Posted: Sat Jan 31, 2009 3:29 am Post subject: |
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| Big Mac wrote: |
It's very simple. You pay 4.5 per cent of your monthly salary into the pension fund. Your boss also pays 4.5 per cent. When you decide to leave Korea you can apply to get all that money back, as long as you are from Canada, the United States or Australia.
Just ignore the goobligok you read on the national pension website. It doesn't make any sense, as is with many things in Korea. |
I understand that bit--what I'm interested is what would happen if I decided to retire in Korea when I'm 65. |
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Young FRANKenstein
Joined: 02 Oct 2006
Location: Castle Frankenstein (that's FRONKensteen)
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| Posted: Sat Jan 31, 2009 3:32 am Post subject: |
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| Big Mac wrote: |
| When you decide to leave Korea you can apply to get all that money back**, as long as you are from Canada, the United States or Australia |
** = as a lump sum payment
Brits and Irish get their pension transferred to their pension plans back home (I think Japan can lumped in with this group).
AFAIK, only Kiwis and Saffs don't get their pension back, but Saffs at least aren't required to pay it in the first place. |
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