State pension payouts rise 18% in 10 years
According to the National Pension Service, this is because the consumer price index was used to calculate the amounts to be paid out in each successive year.
Korea has seen positive inflation rates of 0.8 percent in 1999, 3.6 percent in 2003, 4.7 percent in 2008, 1.3 percent in 2013, 1.3 percent in 2014, 0.7 percent in 2015, 1 percent in 2016, 1.9 percent in 2017 and 1.5 percent in 2018.
The NPS will increase this year’s basic pension payment by 0.4 percent, reflecting last year’s inflation rate of 0.4 percent.
The average monthly payout for old-age pensioners will therefore increase from 525,018 won as of September 2019 to 527,118 won from Jan. 25.
Pensioners who receive the largest monthly amount, about 2.11 million won as of September 2019, will get 8,444 won more from this month.
Only the National Pension Service increases payouts based on the inflation rate. Private pension plans provide set amounts, so the actual value of a person’s pension declines as consumer prices rise.
State pension plans are for life, and if a pensioner dies, the bereaved family can receive part of the pension under certain conditions.
By Kim So-hyun ([email protected])