Old age pension vs. basic pension, do you know the difference?

compare the Old Age Pension vs Basic Pension differences, up to date to 2025. see at a glance who qualifies for the Old Age Pension, the Basic State Pension, and whether you can get both. get the complete guide to collecting your state pension at 65 and over.

think everyone is entitled to a pension at age 65? Many people confuse the Old Age Pension with the Basic State Pension, but they're two completely different programs. more importantly, you can receive both pensions at the same time if you qualify. as of 2025, 7.36 million seniors nationwide are receiving the basic pension, and 44% of them are receiving both the old-age pension and the basic pension.

the old-age pension is the money you receive in exchange for paying insurance premiums consistently during your younger years. the basic pension, on the other hand, is a tax-supported welfare program for older people with low income and assets. In this article, we'll explain the eligibility criteria for the old-age pension, the criteria for the basic pension, and the actual amount of money you can receive as of 2025.

what is the difference between the old-age pension and the basic pension?

the main difference between the old-age pension and the basic pension is their funding and eligibility. the old-age pension is a type of social insurance that people between the ages of 18 and 60 pay monthly premiums to receive. the basic pension, on the other hand, is a state-supported welfare system for people aged 65 and older whose income and assets are below a certain level.

the old-age pension is a system where you get what you pay into, while the basic pension is a subsidy to help the elderly in need. Therefore, you can receive the old-age pension regardless of your income or assets as long as you meet the enrollment period, while the basic pension requires means-testing.

the two pensions are also administered by different organizations. the old-age pension is administered by the National Pension Service, while the basic pension is administered by the Ministry of Health and Welfare and local governments. you can apply for the old-age pension at a National Pension Service branch, and for the basic pension at any community center or National Pension Service office.

old-age pension eligibility and eligibility age in 2025

to be eligible for the old-age pension, you must have at least 10 years of membership. if you have paid pension insurance premiums for at least 120 months, you are entitled to an old-age pension. if you have less than 10 years, you will receive a refundable lump sum instead of an old age pension.

as of 2025, the age of eligibility for the old-age pension depends on your year of birth. people born between 1953 and 1956 are eligible for the old-age benefit at age 61, people born between 1957 and 1960 are eligible at age 62, and people born between 1961 and 1964 are eligible at age 63. those born between 1965 and 1968 can start at age 64, and those born in 1969 and later can start at age 65. the 1998 pension reform raised the eligibility age by one year every five years.

the average old-age pension in 2025 will be 669,523 won ($670,000) per month. the amount varies by individual depending on the length of membership and premiums paid, with the highest recipients receiving up to 2,960,000 won per month. the national pension contribution rate is 9% of the monthly base income, and if you are an employee, you and your company pay 4.5% each.

there is also an early old-age pension system. provided that you are not engaged in gainful employment, you can receive an early old-age pension from the starting age for each year of birth, which is reduced by 6% for every year you receive it earlier. conversely, the deferred pension is increased by 7.2% per year for each year you delay up to five years, up to a maximum of 36%.

basic pension eligibility criteria and the latest amount in 2025

the basic pension is available to South Koreans aged 65 and over whose income is below the threshold amount. in 2025, the threshold is 2.28 million won per month for a single person and 3.64 million won per month for a couple. this is an increase of 150,000 won and 240,000 won from 2024, respectively.

in 2025, the basic pension will be 342,510 won per month. this is an increase of 7,700 won, reflecting the consumer price inflation rate of 2.3% from the previous year. those who do not receive a national pension or receive less will receive the full amount.

the amount is calculated by adding together the assessed value of your income and the income conversion value of your property. if you have earned income, as of 2025, you will be able to deduct 1.12 million won per month, and only 70% of the remaining amount will be recognized as income. for example, if you earn a monthly salary of 3 million won, your income assessment is (3 million won - 1.12 million won) × 70% = 1.36 million won.

property is divided into general property and financial property. residents of large cities can deduct 135 million won from their property, medium-sized cities can deduct 85 million won, and rural areas can deduct 72.5 million won as basic property. financial property is also deducted up to 20 million won. the remaining amount after deduction is converted into monthly income by applying an income conversion rate of 4% per year.

can I receive both the old-age pension and the basic pension?

this is the most common question that many people ask, and the short answer is yes. the old-age pension and the basic pension are completely separate programs, so if you meet the conditions for both, you can receive both at the same time.

as of 2025, about 2.65 million of the total 7.36 million Basic Pension recipients also receive the National Pension Old Age Pension. that's about 44% of the total who receive both pensions at the same time. however, it's important to note that the basic pension may be reduced depending on the amount of national pension you receive.

the conditions for receiving dual benefits are simple. first, you must be 65 years of age or older, second, you must have at least 10 years of National Pension contributions and be entitled to an old-age pension, and third, your earnings must be below the selection threshold. If you meet all three, you can receive both pensions together.

in particular, those who receive a survivor's pension or a disability pension can receive the full amount without reducing the basic pension. on the other hand, recipients of direct pensions such as the civil service pension, private school teachers' pension, military pension, and separate postal pension and their spouses cannot receive the basic pension.

how much will my basic pension be reduced if I receive a national pension?

if you receive the National Pension Old Age Pension, your basic pension may be reduced. as of 2025, if you receive a monthly National Pension of 513,760 KRW or less, you will receive the full Basic Pension of 342,510 KRW. this amount is calculated as 150% of the basic pension amount.

if you receive more than 513,760 won, the amount you receive is calculated using two different formulas. the first formula is the A-benefit method, which subtracts 2/3 of the A-benefit (the basic pension portion of the National Pension) from the base pension amount and adds the supplementary pension amount. the second formula is 250% of your base pension amount minus your National Insurance benefit.

let's take a look at a real-world example: A person who receives a monthly national pension of 400,000 won ($513,760) or less will receive the full 342,510 won basic pension, for a total of 742,510 won. if you receive a national pension of 600,000 won, you will receive a basic pension of about 310,000 won, totaling about 910,000 won. if you receive a national pension of 800,000 won, your basic pension will be reduced to about 250,000 won, totaling about 1.05 million won.

if both husband and wife receive the basic pension, 20% of the calculated basic pension amount will be reduced. for example, if the husband receives a national pension of 500,000 won and the wife has no national pension, they will each receive 274,008 won, a 20% reduction from 342,510 won, for a total basic pension of 548,016 won.

top 5 Frequently Asked Questions

Q1. Will the basic pension be automatically deposited when I turn 65?

no. You must apply for the basic pension yourself to receive it. it is not automatically paid, so you must apply for it at a civic center or National Pension Service branch from one month before the month of your birthday. it will be paid from the month of application and cannot be retroactively paid, so it is recommended to apply as soon as possible.

Q2. Can I receive the Basic Pension even if I own a house?

yes, you can. if you have a house or property, you are not automatically excluded. Up to 135 million won ($135,000) is deducted as the basic property value in large cities, and only 4% per year of the remaining amount is converted into income. for example, if you have an apartment worth 200 million won in Seoul, your monthly income is calculated as (200 million - 1.35 million) × 4% ÷ 12 months = about 216,000 won.

Q3. If I pay a lot of national pension, will I not receive the basic pension?

it is not related to the amount of National Pension contributions. the basic pension is determined based on the amount of income recognition, so even if you pay a lot of national pension, you can receive the full amount of basic pension if the actual amount you receive is 513,760 won or less and the amount of income recognition is below the selection threshold. most people who have been enrolled in the National Pension for 11 years or less receive the full basic pension.

Q4. If I apply for an old-age pension late, can I receive it retroactively?

if you apply for an old-age pension within five years of becoming eligible, you will receive retroactive payments for the last five years. after 5 years, you can only receive the last 5 years, so it is recommended to apply as soon as possible. On the other hand, the basic pension is paid only from the month of application, so there is no retroactive payment.

Q5. If I receive a public pension, can I also receive a basic pension?

no. If you are a recipient of a direct pension such as a civil service pension, private school teacher's pension, military pension, or separate postal pension, neither you nor your spouse can receive a basic pension. However, there are exceptions if you have less than 10 years of service under a linked retirement pension or if it has been 5 years since you received a survivor's lump sum.

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the Old Age Pension and the Basic Pension are the foundation of your retirement. as of 2025, the basic pension alone can provide more than KRW 340,000 per month, and when combined with the national pension, it can provide a stable income of more than KRW 1 million per month.

you can apply for the basic pension starting one month before your birthday, and you can do so at all community centers and National Pension Service branches nationwide. if you have limited mobility, you can call the National Pension Service at 1355 and a staff member will come to you and help you apply.

you can check the estimated amount of your old-age pension in advance on the National Pension Service's website or mobile app. you can claim up to three months before you become eligible, so be prepared.

did you find this article helpful in preparing for your retirement? Let us know if you have any questions in the comments. if you'd like more pension information, please subscribe and like us. next time, we'll talk about specific strategies to increase your pension payout.