Pension Rules Eased for Students, Housewives

The government said it will make it easier for housewives and students, who are categorized as voluntary subscribers, to subscribe to the national pension, a move expected to restructure the pension pool.

Under the revised national pension decrees, which will be made public from April 27 to May 17 before implementation, the minimum monthly pension will go down to 89,000 won from 126,000 won for those who are exempt from the obligatory subscription, the Ministry of Health and Welfare said.

Among those exempted are housewives, and students aged 27 or younger. (They can subscribe to the pension fund if they so choose.) The number of these voluntary subscribers has steadily been rising ― to 36,000 at the end of 2009 from 28,000 the previous year.

The easier entry is expected to help boost the number of subscribers among those currently exempt and those who are potential subscribers, the ministry said.

Under the revised rules, they can extend the subscription period even after they turn 60 years old, the current age ceiling for the pension.

At the end of 2009, 41,000 citizens over 60 years in age decided to continue their subscription, up from 27,000 at the end of 2007. "Many people are showing a greater interest in extending the subscription period even after they turn 60 for a better post-retirement life," a government official said.