🚨 National Pension Voluntary Subscription: Young People's Self-Directed Retirement Planning and Understanding the Pension System

Today Korean Social News | 2025.07.03

📌 Sharp Increase in National Pension 'Voluntary Subscription' Among Under-30s…Young People Actively Preparing for Retirement

💬 The number of voluntary National Pension subscribers under 30 has increased 2.3 times over the past 5 years. This is analyzed as a result of young people who are excluded from automatic National Pension enrollment due to delayed employment, non-regular jobs, and freelance work taking initiative in retirement planning. The political sector is actively discussing bills for automatic National Pension enrollment at age 18. Experts emphasize that longer subscription periods are advantageous for increasing pension benefits, while also pointing out that additional measures are needed for National Pension financial stability.

Summary

• National Pension Voluntary Subscription is a system where people not required to join can voluntarily enroll in the National Pension.
• Recently, voluntary subscriptions among young people have surged, mainly due to delayed employment and job instability.
• Longer subscription periods lead to higher pension benefits, making early enrollment advantageous.

1️⃣ Definition

National Pension Voluntary Subscription refers to a system where people who are not required to join the National Pension can voluntarily enroll and pay premiums. Simply put, it's when people who don't automatically join the National Pension because they're not employed or have no income choose to join on their own.

This is a form of social security system that ensures all citizens can receive National Pension benefits to guarantee their retirement life.

💡 Why is this important?

• Job seekers and freelancers can also prepare for retirement.
• Longer subscription periods lead to higher pension benefits, making early enrollment advantageous.
• You can receive various National Pension benefits (old-age pension, disability pension, survivor pension).
• Young people with unstable income can also systematically prepare for retirement.

2️⃣ Main Content and Features of National Pension Voluntary Subscription

📕 Eligible Members and Conditions

• Voluntary subscription eligibility is clearly defined. Main eligible groups include:

  • Domestic residents aged 18 to 59 who are not required to join the National Pension.
  • This includes job seekers, university students, freelancers, and artists.
  • Housewives and unemployed people can also join.
  • People in military service can also apply for voluntary subscription.
  • Koreans living abroad can also join under certain conditions.

• The enrollment process is relatively simple. Main procedures include:

  • You can apply through National Pension Service offices or online.
  • You only need simple documents like ID and bank account copy.
  • Premium payments start the month after enrollment.
  • You can stop or resume membership at any time.
  • Premiums are paid monthly through automatic transfer or bills.

📕 Premium Calculation and Payment Methods

• Premiums can be determined based on your desired income level. Main features include:

  • As of 2025, the minimum premium is 99,000 won per month (standard monthly income of 1.1 million won).
  • The maximum premium is 486,000 won per month (standard monthly income of 5.4 million won).
  • The premium rate is 9% of income, with voluntary subscribers paying the full amount.
  • You can change your standard monthly income once a year.
  • You can apply for payment exemption or installment payments depending on your financial situation.

• Various payment methods are available. Main payment options include:

  • Automatic transfer is most convenient and avoids late fees.
  • You can receive bills and pay at banks or convenience stores.
  • Payment is also possible through internet banking or mobile banking.
  • You can prepay for several months in advance.
  • Late fees are charged for overdue payments, so be careful.

Major Issues with National Pension Voluntary Subscription

1. Financial Burden: Monthly premiums of over 100,000 won can be a significant burden for young people
2. System Awareness: Lack of promotion and information about the voluntary subscription system
3. High Dropout Rate: Many people give up membership due to financial difficulties
4. Pension Payment Anxiety: Concerns about future benefits due to National Pension financial deterioration
5. Alternative Investments: Comparing profitability with personal pensions and other investment options

3️⃣ Current Status and Effects of Voluntary Subscription

✅ Current Status of Surging Young Adult Voluntary Subscriptions

• Voluntary subscribers under 30 are increasing significantly. Main statistics include:

  • Voluntary subscribers under 30 increased 2.3 times from 2019 to 2024.
  • The proportion of under-30s among all voluntary subscribers continues to grow.
  • Subscriptions by university students and job seekers have particularly increased.
  • Subscriptions by freelancers and sole proprietors are also on the rise.
  • The increase rate among female voluntary subscribers is higher than among males.

• There are main causes for the increase in voluntary subscriptions. Major causes include:

  • Delayed employment leading to later start of economic activities is the main cause.
  • Increase in non-regular workers and freelancers excluded from stable employment.
  • Growing awareness of retirement planning leading to more early enrollments.
  • Job instability caused by COVID-19 influenced the increase in voluntary subscriptions.
  • Improved understanding of long-term National Pension benefits.

✅ Benefits and Effects of Voluntary Subscription

• It provides various benefits to individuals. Main benefits include:

  • Longer subscription periods lead to higher old-age pension amounts.
  • You can also receive disability and survivor pensions in case of disability or death.
  • Pension premiums qualify for tax deductions during year-end tax settlement.
  • Pension benefits reflect inflation rates, guaranteeing real purchasing power.
  • Lifetime pensions help prepare for longevity risk.

• There are also positive effects for society as a whole. Main effects include:

  • Reduced blind spots in retirement income security strengthen the social safety net.
  • Individual voluntary retirement planning distributes future social security burdens.
  • Long-term fund creation contributes to national economic development.
  • Intergenerational solidarity and mutual aid spirit spreads.
  • Helps build a sustainable pension system for an aging society.

4️⃣ Related Terms Explained

🔎 Standard Monthly Income

• Standard monthly income is the income basis for calculating National Pension premiums and benefits.
• Standard monthly income refers to the monthly income that serves as the basis for calculating National Pension premiums and determining pension benefits. It may differ from actual income and is determined within the range set by the National Pension Act.
• Key features of standard monthly income include: First, as of 2025, it ranges from a minimum of 1.1 million won to a maximum of 5.4 million won. Second, voluntary subscribers can choose their desired level within this range. Third, it's adjusted annually reflecting the previous year's average income growth rate. Fourth, premiums are calculated as 9% of the standard monthly income.
• Higher standard monthly income means higher premium burden but also higher future pension amounts. It's important for voluntary subscribers to choose an appropriate level considering their financial capacity and retirement plans.

🔎 Pension Premium

• Pension premium is the insurance premium that National Pension subscribers pay monthly.
• Pension premium refers to the insurance premium that people enrolled in the National Pension system must pay monthly to receive retirement pensions. This premium is paid as pension benefits to current retirees and becomes the funding source for your own future pension benefits.
• Pension premium calculation methods include: First, it's calculated as 9% of standard monthly income. Second, workplace subscribers split the cost with employers paying 4.5% each. Third, regional subscribers and voluntary subscribers pay the full amount themselves. Fourth, as of 2025, it ranges from a minimum of 99,000 won to a maximum of 486,000 won.
• Pension premiums qualify for tax deductions as pension premium deductions during year-end tax settlement. Also, since future pension amounts are determined by premium payment periods and average standard monthly income, it has the character of long-term retirement investment.

🔎 Old-Age Pension

• Old-age pension is a National Pension benefit received for life after reaching a certain age.
• Old-age pension refers to the pension that National Pension subscribers receive monthly on a regular basis when they reach a certain age. It's the most representative benefit of the National Pension, serving to guarantee basic income for retirement life.
• Old-age pension eligibility requirements include: First, you must have a subscription period of at least 10 years. Second, you must reach the benefit start age, which is currently 65 for those born in 1969 or later. Third, some pension amounts may be adjusted if you have income.
• Old-age pension amount consists of basic pension amount and dependent family pension amount. The basic pension amount is calculated considering your average standard monthly income, subscription period, and the average income of all subscribers. Longer subscription periods and higher income lead to higher pension amounts, and it's adjusted annually reflecting inflation rates. Since it's paid for life, it's an effective measure against longevity risk.

5️⃣ Frequently Asked Questions (FAQ)

Q: Can university students also apply for National Pension voluntary subscription?

A: Yes, university students aged 18 or older can apply for National Pension voluntary subscription. University students are generally not required to join the National Pension, so they can voluntarily join through voluntary subscription if they wish. However, if they have certain income from part-time jobs, they may be automatically enrolled as regional subscribers, so verification is needed. University students often join with the minimum standard monthly income (1.1 million won) considering financial burden, with monthly premiums of 99,000 won. Joining during university extends the subscription period, which has the advantage of increasing future pension benefits. Also, if premium payment becomes difficult due to studies or employment, you can stop membership at any time and resume later. Parents often pay premiums on behalf of students, and in this case, parents can receive pension premium deduction benefits during year-end tax settlement.

Q: What's the difference between voluntary subscription and regional subscription?

A: Voluntary subscription and regional subscription differ in enrollment method and target groups. Regional subscription is mandatory enrollment for people who don't work at companies but have income (individual business owners, freelancers, etc.), while voluntary subscription is voluntary enrollment for people without income or who are not required to join. Regional subscribers have their standard monthly income determined by their income, but voluntary subscribers can choose their desired level. Premium calculation methods are the same - 9% of standard monthly income paid entirely by the individual. Regional subscribers must continue enrollment as long as they have income, but voluntary subscribers can stop or resume membership at any time. Also, regional subscribers must pay health insurance premiums together, but voluntary subscribers only need to pay National Pension premiums. Pension benefit calculation methods and eligibility requirements apply equally regardless of subscription type.