Article body
Next year's basic pension budget is expected to reach 25.7 trillion won, an increase of 11% or 2.6 trillion won compared to last year. The biggest change in this reform plan is that the payment amounts will vary based on income. Those in the bottom 0-30% income bracket will receive 380,000 won per month, an increase of 30,000 won, while those in the 30-45% bracket will receive 359,000 won, reflecting inflation. The remaining 45-70% bracket will continue to receive the same amount of 350,000 won.
The government considered a reform to reduce the number of basic pension recipients to those below 80% of median income by 2030, while increasing payment amounts, citing financial burdens. However, it ultimately decided not to reduce the number of recipients. This decision is interpreted as one made with political considerations in mind. Kim Dae-young, a member of the Pension Research Association, pointed out that "the decision to spend more remains, but the reform to correct who receives it has disappeared."
Changes will also be made to the couple reduction rate, decreasing the reduction rate for lower income brackets from 20% to 10%. As a result, next year, couples in the bottom 0-30% income bracket are expected to see their monthly payments increase from 560,000 won to 684,000 won, while those in the 30-45% bracket will see an increase to 646,000 won. The welfare budget for next year is projected to reach 152 trillion won, including the future response fund, marking a 10.9% increase from last year.