National Pension Calculator

Complete Guide to National Pension Benefits

Korea's National Pension is a mandatory public pension system that provides benefits for old age, disability, and death. While contributions are automatically deducted from employee salaries, few people know exactly how much they will receive. This guide covers how pension benefits are calculated and smart claiming strategies.

1. How is the pension amount determined?

Old-age pension is based on two key factors: A-value (average monthly income of all subscribers, ~KRW 2.98M in 2026) and B-value (your personal average monthly income during contribution). The formula is 1.2 x (A + B) x P, where P is the payout rate based on contribution period. The income replacement rate is about 40% for 20 years of contributions.

2. Early vs normal vs deferred claiming

• Early (age 55-59): 6% reduction per year. Claiming 5 years early means 30% less — KRW 1M becomes KRW 700K.
• Normal (age 63-65): Full 100% based on birth year. The safest default choice.
• Deferred (up to 5 years): 0.6% increase per month (7.2% annually). 5-year deferral yields 36% more — KRW 1M becomes KRW 1.36M.

3. Maximizing your pension

• Voluntary continued enrollment: Continue contributing after 60 up to age 65 to extend your contribution period.
• Retroactive payments: Pay back past periods of exemption or non-payment to increase contribution length.
• Credits: Childbirth credits (for 2+ children) and military service credits (6 months) can add to your contribution period.
• Dependent supplement: Additional pension for dependents (spouse, children, parents).

4. Is the National Pension enough for retirement?

The income replacement rate of 40% cannot fully cover living expenses. The recommended monthly retirement budget for a couple is about KRW 3M, but the average pension is only about KRW 640K. Building a "three-pillar" structure with workplace pension (IRP), private pension, and reverse mortgage is ideal.