Senior job seekers looking at a bulletin board containing information on job posts at a job fair held in the southeastern port city of Busan. (Yonhap)
SEOUL, Aug. 9 (Korea Bizwire) — A growing number of South Koreans are opting to access their national pension earlier than the anticipated age, even at the cost of reduced benefits, the state pension operator said Tuesday.
Since the initiation of withdrawals in 1999, 800,413 individuals have enrolled for the early receipt of the national pension, according to the National Pension Service.
This year, 45,111 people have already applied for early receipt by April, nearing the count of last year’s record.
The National Pension Research Institute forecasts that the count of early recipients of the national pension could surpass 1 million by 2026.
The early senior pension program enables individuals to receive senior-age pensions one to five years prior to the official age.
The program aims to provide income for those who retire early and grapple with low earnings while waiting for the designated age to commence the national pension disbursements.
Nevertheless, for each year below the designated age, pension payments are curtailed by 6 percent (0.5 percent per month).
Consequently, availing the pension five years ahead would lead to pension payments that are up to 30 percent lower than the expected rate.
M. H. Lee (mhlee@koreabizwire.com)
