When you turn 65, the first thing you need to take care of is the retirement welfare system, basic pension.Even if you are eligible, it is a system that you cannot receive unless you apply on your own, so it is important to know the conditions and calculation method in advance.What is basic pension?The basic pension is a system that supports retirement life by paying a certain amount of money every month to those aged 65 or older with relatively low income and assets.This applies to seniors in the bottom 70% of income, and the application must be made directly by the applicant or his/her agent in order for payments to begin.Qualification requirementsBoth conditions must be met.Age: 65 years of age or older, a Korean citizen residing in Korea (as of 2026, those born in 1961 can apply after turning 65)Recognized income: The sum of the recognized income of the applicant and spouse must be less than the selection standard announced every year by the government.Even if only one of the couple applies, the recognized income amount is calculated based on the marital household, and if both people are over 65 years of age, it is often advantageous to apply separately.How do I calculate the recognized income?The recognized income amount is calculated by adding up all of the items below, rather than simply looking at the monthly salary or pension amount.Income assessment amount: Earned income, business income, public pension receipts such as national pension, rental income, etc. (In the case of earned income, a certain amount is first deducted and an additional deduction rate is applied to the remaining amount, so the actual calculated amount is reflected lower than salary)Income conversion amount of property: The amount converted into monthly income according to a certain formula of real estate such as houses and land (based on publicly announced prices), financial assets, and automobile values.Since the calculation method is complex and the basic property deduction amount is different depending on the region, it is much more accurate and faster to use Bokjiro (bokjiro.go.kr)’s basic pension simulation calculation service rather than calculating the exact benefit yourself.Selection criteria and payment amount in 2026The 2026 selection standard and standard pension amount are adjusted every year according to prices and policies.There may be some differences in specific figures depending on the searched data, so please use the numbers in this article only as a reference to understand the approximate flow, and be sure to check the exact amount through welfare mock calculation or the National Pension Service.The general structure is as follows:A structure in which the payment amount decreases as the recognized income amount approaches the selection standard amount.If a couple receives benefits together, a certain percentage (usually 20%) is reduced from the amount each person receives.If you are also receiving a national pension, your basic pension may be reduced by up to 50% if your national pension amount exceeds a certain level (national pension-linked reduction system).How to applyOnline: Apply with a joint certificate or simple authentication on the Bokjiro (bokjiro.go.kr) websiteOffline: Visit the town/myeon/dong community center or National Pension Service branch in your jurisdiction of residence.Required documents: Consent to provide ID, copy of bankbook, financial information, etc. (If you have a spouse, documents related to your spouse are also required)Application period: Application is possible from 1 month before the month of your 65th birthday.What if the property standards are ambiguous?Financial assets are deducted up to a certain amount and only the remaining amount is converted into income, so having a bank account balance does not necessarily mean you will be excluded.The calculation method for automobiles may vary depending on engine displacement or vehicle price standards, and related standards are often revised every year, so it is recommended to check the latest standards.If you are excluded because your assets vaguely exceed the standards, we recommend that you inquire directly with the community center or the National Pension Service, as the results may vary depending on detailed requirements such as debt deduction or jointly owned shares.finishing tipsIf your parent is about to turn 65, it is a good idea to prepare for the application at least one month before their birthday.Even if you are eliminated because you narrowly exceed the income standard, the results may vary if you accurately reflect the earned income deduction or property deduction items, so we recommend that you carefully perform a mock calculation.It would be a good idea to check out other senior welfare benefits (energy vouchers, local government filial piety allowance, etc.) that can be received along with the basic pension.This article has been written for general information purposes.As the exact eligibility and payment amount change according to the policy every year and vary depending on individual circumstances, please be sure to check with Bokjiro (bokjiro.go.kr), the National Pension Service, or the administrative welfare center of your residence before applying.
