Health ministry reports pension support eases costs for low-income subscribers

The health ministry said that 58.3 percent of surveyed low-income regional subscribers to the National Pension reported lower regular expenses after receiving premium support, as it expanded eligibility to cushion higher contribution costs.

The National Pension Service analyzed 1,816 text-message survey replies. Before receiving aid, 47.7 percent cited unemployment or a business suspension as their biggest barrier to retirement preparation, while 41.0 percent cited irregular income.

Some 40.3 percent said the support gave them a sense that the state or society protected them, while 39.6 percent said it reassured them they could continue preparing for retirement. "The survey confirms that premium support does more than ease the immediate burden for financially struggling regional subscribers; it also acts as a social safety net that helps them avoid giving up retirement preparation," Sohn Ho-jun, the ministry's pension policy director, said.

The revised program took effect Jan. 1 as the National Pension contribution rate rose to 9.5 percent from 9 percent. It removed the condition that people had resumed payments after unemployment or leave.

Regional subscribers earning under 800,000 won a month can receive half their premiums for up to 12 months, capped at 37,950 won a month. Those with a property-tax assessment base of at least 600 million won or annual comprehensive income, excluding business and employment income, of at least 16.8 million won are not eligible.

Baek, a self-employed person in their 50s in Ansan, considered stopping payments after a business downturn and surgery required several months of rest. "Learning that the state would cover half the premiums was a reassuring reminder that I was not enduring a difficult period alone," Baek said.

The ministry opened applications in June through the My Nearby National Pension mobile app and the NPS website. "We will continue expanding guidance and promotion through various channels so low-income regional subscribers facing unemployment or business downturns do not miss the benefit because they are unaware of the program," Jeong Tae-gyu, pension director at the NPS, said.