"Will Accept Losses to Receive Quickly"... Nearly 800,000 Early Recipients of National Pension

The number of recipients opting for early pension payments is increasing. Despite the reduction in the amount received, many are choosing to advance the timing of their benefits, with the total already approaching 800,000.

According to the National Pension Service on the 13th, as of the end of April, the number of early pension recipients was 800,413, an increase of 45,111 from the end of last year (755,302). This is the largest number since the early pension system was introduced in 1999.

Early pension refers to receiving benefits up to five years earlier than the standard pension starting age. Under the current system, anyone aged 55 or older who has contributed for more than 10 years and is retired can apply for early pension as long as their income does not exceed a certain amount (approximately 2.86 million KRW from labor and business income in 2023). However, the pension amount is reduced by 6% annually for each year received early. Receiving benefits five years early results in a maximum loss of 30%. If recipients change their minds, they can also stop receiving early pension payments.

The increase in early recipients is attributed to the pension starting age being delayed by one year to 63 this year. As the pension payment timing was pushed back by a year, more people found it difficult to wait until then.

There is also analysis that this is an unavoidable choice to fill the income gap between retirement and the start of pension payments. In Korea, the legal retirement age is 60, while the pension can generally be received starting at age 63.

This content was produced with the assistance of AI translation services.