The criteria for reducing old-age pension benefits for seniors with a certain level of income have been significantly eased. Going forward, those with a monthly income not exceeding approximately 5.19 million won will be able to receive their full pension without any reductions. The Ministry of Health and Welfare announced that it will implement system improvements to raise the threshold for old-age pension reductions in order to prevent the contraction of economic activity among seniors and support a stable retirement.

Reduction Threshold Raised by 2 Million Won... Encouraging Economic Activity Among Seniors Since its introduction, the National Pension has reduced benefits for recipients who earn labor and business income above a certain threshold. While this was a measure to ensure the fiscal sustainability and equity of the pension system, concerns have been consistently raised that seniors avoid economic activities for fear of pension reductions.

Under the new system, the monthly income threshold at which reductions begin has been raised by 2 million won, from the previous 3,193,511 won to 5,193,511 won. As a result, the relatively lower-income brackets among the previous reduction ranges are now excluded, and pension reductions will only apply to those earning above a certain income level. This reflects social changes such as increased employment and economic activity among seniors, as well as the growing burden of living and medical expenses due to longer life expectancies.

Applied to Income Earned from 2025... Refunds Proceed Without Application The government has decided to apply these improvements starting from income earned in 2025. However, since the raised threshold has already been applied to this year's income, recipients whose reported monthly income does not exceed 5,193,511 won are currently receiving their pensions without any reductions.

Additionally, recipients whose average monthly income last year was less than 5,089,062 won but whose pensions were reduced under the previous criteria will receive refunds for the reduced amounts. The refund process will proceed without a separate application. The National Pension Service will verify final tax data from the National Tax Service, select eligible recipients, and disburse the refunds sequentially. Previously submitted income data will also be used in the refund review. The government expects that not reducing pensions from the outset, rather than issuing post-hoc refunds, will improve convenience for recipients.

Approximately 100,000 People Expected to Benefit Annually... Dependent Family Pension Can Be Received Simultaneously The Ministry of Health and Welfare expects that approximately 100,000 old-age pension recipients per year will receive their pensions without reductions as a result of this system reform. Recipients already subject to the raised threshold are receiving an additional average of about 50,000 won per month in pension benefits, while those eligible for refunds on last year's income are expected to receive an average of approximately 600,000 won per person on an annual basis.

Recipients excluded from the reduction criteria can also receive the dependent family pension simultaneously. If they have dependents such as a spouse, parents, or children, the corresponding pension will be automatically reflected and paid out.

The government expects that this system reform will not only boost the willingness of seniors to work but also strengthen the foundation for stable retirement income. Going forward, it plans to continue refining the National Pension system so that it can be continuously improved in line with social changes.

[This article was written with the assistance of AI. This article was written to help explain the system, and individual eligibility may vary depending on the results of income and asset investigations and relevant laws and regulations. Please consult the relevant authorities for the final details.]