🏦 Guide · 2026-04-27
Korean Home Pension vs National Pension vs Private Pension — 2026 Comparison
A side-by-side table of the three Korean pensions plus four asset-mix strategies showing how to combine them by net-worth profile.
TL;DR — three Korean pensions side by side
| Item | National Pension | Home Pension | Private (Pension Savings + IRP) |
|---|---|---|---|
| Eligibility | 18–59 | 55+ with own home | Anyone |
| Payout starts | Age 65+ | Immediately on signup | Age 55+ |
| Avg payout | ₩1.1M/mo (2025) | ₩1.65M/mo (₩600M home, age 70) | Depends on contributions |
| Tax | Global income | Tax-free | 5.5–16.5% on withdrawal |
| Successors | Survivor pension | Remaining guarantee inherited | Funds inherited |
National Pension — the inflation-adjusted floor
- Indexed to CPI annually (2.3% in 2025)
- "Early claim" at 60 cuts payout by 6%/year, permanently (−30% lifetime)
- "Delayed claim" up to 70 adds 7.2%/year (+36% max lifetime)
If you're healthy and asset-rich, delaying wins on average-life-expectancy math.
Home Pension — turn ownership into cashflow
- Single home, value ≤ ₩1.2B
- Older sign-up = bigger monthly payment
- Heirs can recover any unused guarantee
- Downside: payout fixed at signup (no inflation/price upside)
Use the Home Pension Simulator for your home value and age.
Private pension — tax breaks + flexibility
- Pension Savings ₩6M cap + IRP ₩3M = ₩9M total cap
- Tax credit 13.2–16.5% (better when salary ≤ ₩55M)
- Downside: 5.5–16.5% on withdrawal; early termination triggers 16.5% other-income tax
4 asset-mix strategies
1. Own home + assets < ₩500M (most households)
- Take NP at 65 + start Home Pension
- Use private only for tax credits
2. Own home + assets ₩500M–1.5B
- NP + private withdrawal first (55–65)
- Home Pension as a top-up after 75
3. Assets ≥ ₩1.5B (FIRE candidates)
- Delay NP to 70
- Cover 55–70 with private + investment portfolio
- Home Pension is the last-resort insurance
4. No home + assets ~₩500M
- NP + private heavy
- Consider rental-housing transition near 70
Related tools
Bottom line
The three pensions don't compete — they complement. Your priority changes by net worth and home-ownership, but households that use all three have the steadiest retirement cashflow.