Summary of the 2025 National Pension Reform: How Much Will Your Pension Increase?

In 2025, the long-awaited National Pension reform bill finally passed the National Assembly. Many people are wondering, “How much more will I receive?” or “How much more will I have to pay in premiums?” This post will clearly and accurately explain the key points of the 2025 reform and how it will affect your future pension payments.

✅ Gradual Increase in Pension Contribution Rate: 9% → 13%

The current contribution rate of 9% will be raised to 13%. However, this will not happen all at once. Starting in 2026, it will increase by 0.5 percentage points annually:

2026: 9.5%
2027: 10%
…
2033: 13%

For example, someone earning 3.09 million KRW per month will pay 278,000 KRW in 2025, which will rise to 402,000 KRW by 2033.

✅ Income Replacement Rate Increase: 40% → 43%

Starting in 2026, the income replacement rate will be increased to 43%. This means your retirement pension will amount to 43% of your pre-retirement average income—resulting in higher payouts for retirees.

✅ How Much Will Your Pension Increase? Example of Benefit Changes

Based on the official simulation from the National Pension Service:

Category	Total Contributions	Total Pension Received	First Year Annual Pension
Current System	133.49 million KRW	293.19 million KRW	1.237 million KRW/month
After Reform	187.62 million KRW	314.89 million KRW	1.329 million KRW/month
Increase	+54.14 million KRW	+21.69 million KRW	+92,000 KRW/month

While contributions increase, benefits also increase significantly.

✅ Expanded Birth and Military Service Credits

Previously, birth credits were given only from the second child onward. This will now apply from the first child, with 12 months of pension credit. Military service credit is also increased from 6 months to 12 months, providing substantial benefits for male participants.

+7.87 million KRW per child in additional pension
+5.9 million KRW for military service recognition

✅ Expanded Support for Low-Income Regional Subscribers

Until now, only those with payment history were eligible for premium subsidies. Moving forward, low-income regional subscribers will also receive support—half of the premium for up to 12 months will be covered by the government.

✅ Pension Payment Guarantee Now Legally Stated

The government's obligation to provide pension payments is now legally stated. This significantly reduces anxiety about future payouts and strengthens public trust in the system.

✅ Automatic Adjustment Mechanism Under Review

To respond to future demographic changes, an "automatic adjustment mechanism" is under consideration. Plans are being discussed for adjustments in 2036, 2049, 2054, and beyond to maintain the system’s sustainability.

🔍 How Much Will You Receive? Try the Pension Calculator!

The National Pension Service offers an official pension calculator where you can input basic information to estimate your expected monthly payout. Be sure to give it a try!

📌 Conclusion

The 2025 National Pension Reform is not just about raising premiums. It’s a system designed to provide greater and more secure benefits. With expanded credits for childbirth and military service and improved support for low-income individuals, this reform brings positive change for many.

Now is the time to prepare for your retirement—with the reformed National Pension plan as your strong foundation!

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