Graphics = Designer Seungryeol Lee
The variety of subscribers making use of for a ‘deferred pension’ to obtain extra nationwide pension is rising. Nonetheless, many subscribers are unaware of the danger of being hit with an enormous medical insurance premium in the event that they enhance their pension quantity. On the twenty fourth, we checked with the Nationwide Pension Service to seek out out whether or not making use of for an early or delayed pension is a clever alternative.
What if I obtain a nationwide pension beginning at age 70? Obtain 36% extra pension
Not too long ago, the variety of subscribers making use of for deferred pensions has elevated quickly. In keeping with information offered by the workplace of Democratic Social gathering lawmaker Jeong-ae Han from the Nationwide Pension Service in September final yr, the variety of subscribers receiving deferred pensions has greater than tripled from 29,280 in 2018 to 113,436 in 2023.
A deferred pension is a system that lets you postpone the interval of receiving pension advantages after the age of 65. Yearly you delay receiving advantages, the quantity of the pension will increase by 7.2% (0.6% per thirty days), permitting you to obtain as much as 36% extra after 5 years. The quantity of the month-to-month pension, which is 1 million gained, will increase to a most of 1.36 million gained. Because the Nationwide Pension Service will increase advantages annually by reflecting the speed of change in shopper costs, the quantity of the pension can enhance over time.
Revenue over 20 million earned per yr, disqualification as depending on medical insurance
If you happen to apply for a deferred pension to extend the quantity of your pension, you have to watch out as you might have to pay extra medical insurance premiums than that quantity. It’s because if the month-to-month pension quantity exceeds 1.67 million gained, you’ll lose your qualification as a medical insurance dependent.
Because the medical insurance charging system is reorganized, the revenue normal for figuring out dependents has been strengthened to lower than 20 million gained per yr from 2022. Particularly, native medical insurance subscribers could also be charged greater premiums than workers employed as a result of insurance coverage premiums are charged on their property in addition to their revenue. As of March this yr, the common medical insurance premium for native subscribers is 84,518 gained.
Among the many medical insurance dependent revenue requirements, annual revenue contains curiosity, dividends, enterprise revenue, different and pension revenue (excluding non-public pensions). Because of this should you earn greater than 1.67 million earned per thirty days, together with pension receipts and dividends, you’ll lose your dependent standing. As well as, subscribers whose property tax base quantity is between 540 million gained and 900 million gained should not exceed 10 million gained in annual revenue. You may solely grow to be a dependent if the quantity of your pension is lower than 840,000 per thirty days.
There are numerous instances the place an individual was exempted from being a medical insurance dependent as a result of they have been in receipt of a public pension. In keeping with information submitted by the Nationwide Insurance coverage Company to the workplace of Democratic Social gathering lawmaker Choi Hye-young final March, the quantity of people that have been exempted from being dependents as a result of their public pension revenue exceeded 20 million earned reached the yr a complete of 281,630 individuals. over the past yr and 6 months (from final February).
Additionally it is necessary to notice that married {couples} are additionally exempt. If even one member of a pair is above the revenue normal, the Nationwide Well being Insurance coverage Company deprives the cohabiting partner of their dependent standing. Among the many 281,630 individuals who have been disadvantaged of their dependent standing, as many as 40% have been spouses who misplaced their dependent standing.
Earlier than making use of for a deferred pension, it’s essential to calculate whether or not you can be disqualified from being a medical insurance dependent. It’s a good suggestion to check the quantity of medical insurance premiums you’ll have to pay if you’re transformed to a neighborhood subscriber and the upper pension quantity. To calculate medical insurance premiums, go to the Nationwide Well being Insurance coverage Company web site and use ‘Premium Calculator → Faux Calculate Regional Insurance coverage Premiums’.
Apply for pension early to keep away from medical insurance premium bomb?… “Not a clever alternative”
It might not be a sensible choice to use for an early pension by placing your pension quantity vulnerable to being decreased in case you lose your medical insurance dependent standing. Even should you scale back it by 30% to get your annual revenue beneath 20 million, there are too many variables. The pension quantity will increase yearly to mirror the inflation charge, so annual revenue may exceed 20 million gained, and there’s a chance that the federal government will strengthen the standards for medical insurance dependents.
In a telephone name with Cookie Information on the twenty fourth, a Pension Service official mentioned, “Even should you apply for an early pension, if the speed of inflation is mirrored, there’s a chance that the quantity of pension you’ll obtain acquired greater than the 20 million gained. sooner or later.” He added, “The Nationwide Well being Insurance coverage Company could strengthen the eligibility for dependents past the 20 million earned Subsequently, it’s questionable whether or not making use of for an early pension to keep up dependent standing is a clever alternative.”
An early pension must be chosen rigorously as a result of the quantity of the lifetime pension shall be decreased instantly after making use of. Early pension is a system the place pension advantages are acquired 1 to five years earlier from age 60 or older, earlier than age 65. Not like a deferred pension, the quantity of the pension may be acquired decreased by 6% per yr or 30. % for as much as 5 years. The month-to-month pension quantity of 1 million gained shall be decreased to 700,000 gained.
The variety of instances of making use of for an early pension will increase even when the quantity of pension misplaced is massive. In keeping with the ‘Nationwide Pension Publication Statistics’ revealed by the Nationwide Pension Service in November final yr, the variety of new candidates for an early pension final yr reached 84,402. The variety of new subscribers making use of for an early pension will increase annually to 40,525 in 2021 and 50,975 in 2022.
Reporter Kim Eun-bin eunbeen1123@kukinews.com
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