[Edaily Reporter Lee Ji-hyun ] - “Sir/Ma’am, are you receiving the basic pension?”
△“Isn’t that the Old-Age Pension?”
-“No. The Old-Age Pension and the Basic Pension are different.”

In fact, even among seniors receiving the Basic Pension, there are those who do not know exactly which pension they are receiving. This is because they get confused by the names—whether it’s the National Pension, the Old-Age Pension, or the Basic Pension. Since money is deposited into their bank accounts every month, it’s easy to simply assume it’s a pension provided by the government.

In this week’s “Pension Wizard,” we’ll distinguish between the National Pension’s Old-Age Pension and the Basic Pension—two programs with similar names but entirely different characteristics.

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◇ Old-Age Pension vs. Basic Pension: What’s the Difference?

First, let’s look at the Old-Age Pension. The Old-Age Pension is a type of National Pension. It is a monthly payment received by individuals who paid National Pension premiums when they were younger once they reach a certain age. To be eligible, you must have been enrolled in the National Pension for at least 10 years. The age at which payments begin varies depending on the year of birth. Those born between 1961 and 1964 can start receiving benefits at age 63; those born between 1965 and 1968 at age 64; and those born in 1969 or later at age 65.

So, how much will you receive? According to the Ministry of Health and Welfare, the average monthly old-age pension payment—reflecting the increase effective this past January—is approximately 696,000 won. However, the amount varies significantly depending on the length of enrollment. According to the National Pension Service, as of December 2025, the average monthly payment for recipients with at least 20 years of enrollment is around 1.13 million won. The system is structured such that the longer you are enrolled and the more premiums you pay, the higher your pension amount will be.

The Basic Pension, on the other hand, works differently. It is available even to those who have never paid National Pension premiums. It is intended for citizens aged 65 or older whose recognized income is at or below the eligibility threshold. Recognized income is calculated by adding not only income such as monthly wages and pensions but also the value of real estate and financial assets converted into income equivalents.

This year, the eligibility threshold for the Basic Pension is 2.47 million won per month for single-person households. This means that if your recognized income is at or below this amount, you may be eligible to receive the Basic Pension. However, recipients of certain occupational pensions—such as the Public Officials’ Pension—and their spouses are generally excluded. The standard monthly Basic Pension amount this year is 349,700 won. Not all recipients receive this exact amount; the actual payment varies depending on factors such as the amount of National Pension benefits received or whether both spouses are recipients.

Simply put, the National Pension’s old-age pension is a pension based on the premiums you’ve paid, while the Basic Pension is a pension funded by taxes that the government provides to support income in old age.

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◇ If I receive the National Pension, am I ineligible for the Basic Pension?

No, that is not the case. You can receive both pensions at the same time. For example, a 70-year-old senior who receives 500,000 won per month from the National Pension can still receive the Basic Pension if their recognized income is below the Basic Pension eligibility threshold. However, if you receive a large National Pension benefit, your Basic Pension amount may be reduced. This is due to the so-called “National Pension-linked reduction.” This system adjusts the Basic Pension amount based on the “A Benefit Amount,” which is calculated according to the National Pension benefit amount and the duration of enrollment.

That said, receiving a high National Pension benefit does not automatically exclude you from eligibility for the Basic Pension. Conversely, even if you receive a small National Pension benefit, you may not be eligible for the Basic Pension if your recognized income exceeds the eligibility threshold due to substantial real estate or financial assets. This is one of the reasons why seniors sometimes say, “That person is better off than I am, yet they receive the Basic Pension.”

There’s another point to keep in mind here. The National Pension’s old-age pension and the Basic Pension are generally paid on the 25th of each month. Since the money is deposited into your account on the same day, it can be even more confusing. However, these are two separate programs, and each is paid independently.

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◇ Basic Pension: You May Not Receive It If You Don’t Apply

Both the National Pension’s Old-Age Pension and the Basic Pension require an application process. In particular, the Basic Pension is not automatically paid simply because you have turned 65. Regardless of your address, you can apply by visiting a town, township, or neighborhood administrative welfare center or a National Pension Service branch. Online applications are also available through the “Bokjiro” portal. Since you can apply starting one month before the month of your 65th birthday, it’s a good idea to check in advance.

If you are not receiving the Basic Pension, don’t simply assume it’s because you’re already receiving the National Pension; you should check your recognized income and eligibility requirements. The National Pension’s Old-Age Pension and the Basic Pension—though their names are similar—are separate systems with different eligibility criteria and funding sources. Knowing exactly what kind of pension is deposited into your bank account each month is the first step toward properly securing your retirement income.