Mar 1 • 12:16 UTC 🇰🇷 Korea Hankyoreh (KR)

The state will pay the first insurance premium of the national pension for those who turn 18 next year

Starting next year, the government will support the first insurance premium for young people who join the national pension when they turn 18, aimed at encouraging early enrollment and addressing pension coverage gaps.

Beginning in the upcoming year, the South Korean government has announced that it will cover the first month’s insurance premium for young individuals turning 18 who enroll in the national pension scheme. This initiative is part of an effort to encourage early participation in the pension system, particularly targeting youth and addressing existing gaps in coverage. Currently, the pension premium assistance has been available primarily for rural and low-income enrollees, making this youth-focused initiative a significant first step in broadening support. On January 1, a new bill concerning the national pension laws was passed by the Health and Welfare Committee, which details the specifics of this initiative. The plan aims to support individuals between 18 and 26, with the government committing to pay the equivalent of one month’s premium at the minimum wage, approximately around 42,000 Korean won. This support is expected to benefit around 451,000 high school students born in 2009, projecting a budget of about 19 billion won for the initiative if all eligible youth enroll in the national pension. However, there are important considerations to note about the program. If beneficiaries of the government-supported premium do not meet the criteria for receiving old-age pensions later, they will not be able to count the government-supported month in their contribution period. Additionally, the assistance is contingent upon the young individuals actively applying for it, reflecting a respect for their personal initiative in their pension planning. This policy is part of the broader agenda of the current administration, signaling a commitment to improving the future economic security of the youth population through enhanced pension system participation.

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