Pension Calculator for South Korea

Key Features of the Pension Calculator

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  Contribution Estimation — Enter your monthly income and the calculator determines your contribution amount based on the current 9% rate, splitting the result into employer and employee shares. It applies the standard monthly income floor and ceiling automatically so you see the actual amount that will be deducted from your paycheck.
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  Projected Benefit Calculation — The tool estimates your monthly pension benefit at retirement using the NPS formula. It factors in your average income over the contribution period, total years of participation, and the applicable benefit rate. The result gives you a realistic picture of what to expect — not a vague promise but a number grounded in the actual formula defined by law.
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  Early and Deferred Pension Scenarios — You can model what happens if you claim your pension early — up to five years before the standard eligibility age — or defer it by up to five years after. Early claiming reduces your monthly benefit by 6% per year. Deferring increases it by 7.2% per year. The calculator shows both scenarios side by side so you can weigh the trade-offs.
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  Disability Pension Estimates — If you become disabled while covered by the national pension, you may qualify for disability pension benefits. The calculator outlines the four disability grades recognized by the NPS and estimates the corresponding benefit level based on your contribution history and income records.
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  Survivor Pension Preview — In the event of a subscriber's death, eligible family members — spouse, children, or parents — may receive survivor pension payments. The tool estimates this amount based on the deceased subscriber's contribution record, helping families understand the financial protection the system provides.
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  Multi-Year Projection — Plan ahead by projecting your pension over different career lengths. See how an extra five years of contributions affects your monthly benefit, or explore what happens if your income grows at a steady rate year over year. This forward-looking view helps you make informed decisions about career transitions and retirement timing.

How to Calculate Your National Pension

1. 1

   Determine Your Standard Monthly Income

   Your standard monthly income is the baseline for all pension calculations. For workplace subscribers, it is typically your gross monthly salary as reported by your employer. For self-employed individuals, it is based on declared income. Check your pay stub or NPS statement for the exact figure. Remember that the NPS applies a floor of 370,000 KRW and a ceiling of 5,900,000 KRW — if your actual income falls outside this range, the calculator adjusts it to the nearest boundary. This figure is updated annually, so verify you are using the most current thresholds.

2. 2

   Calculate Your Monthly Contribution

   Multiply your standard monthly income by 9%. If you are a workplace subscriber, your employer withholds 4.5% from your salary and matches it with another 4.5%. For a standard monthly income of 3,000,000 KRW, that is 135,000 KRW from you and 135,000 KRW from your employer — a total of 270,000 KRW deposited into the NPS each month. Self-employed subscribers pay the full 270,000 KRW themselves. Enter your income into the calculator and it handles the math, including the split.

3. 3

   Estimate Your Contribution Period

   The length of time you contribute directly affects your pension amount. The minimum qualifying period is 10 years — 120 months — for the standard old-age pension. If you started working at age 25 and plan to retire at 60, that is 35 years of contributions. The calculator lets you input your start date and expected retirement date, then computes the total contribution period. Gaps in employment — such as time spent abroad, on leave, or between jobs — reduce your total period unless you made voluntary contributions during those gaps.

4. 4

   Apply the Pension Benefit Formula

   The NPS uses a formula that blends two components: the average income of all subscribers (called the A value) and your personal average income over your contribution history (called the B value). The basic monthly pension equals 1.2 multiplied by (A + B) multiplied by (1 + 0.05 times the number of contribution years exceeding 20), then divided by 12 for a monthly figure. The 1.2 factor is being gradually reduced toward 1.0 over a transition period ending in 2028 — a policy change enacted in 2007. The calculator applies the correct factor for your projected retirement year.

5. 5

   Review Early or Deferred Options

   The standard old-age pension eligibility age is gradually rising. For those born in 1969 or later, it will be 65. You can claim early pension starting five years before your eligibility age, but each year of early claiming cuts your benefit by 6% — claiming the full five years early means a 30% permanent reduction. On the other hand, deferring your pension by up to five years after reaching eligibility age increases your monthly benefit by 7.2% per year — up to a 36% bonus. The calculator models both paths so you can see the crossover point where deferral pays off.

Expert Tips for Maximizing Your Pension

Related Tools

Your national pension is one pillar of retirement security, but it does not stand alone. Use the Severance Pay Calculator to understand the lump sum you receive when you leave an employer — that sum can bridge the gap between your last paycheck and your first pension payment. The Salary After Tax Calculator shows exactly how pension contributions affect your monthly take-home pay, helping you budget around the 4.5% deduction. And the Monthly Salary Calculator translates annual or hourly compensation into the monthly figure the NPS uses as its contribution base. Together, these tools give you a clear view of how pension contributions fit into your broader financial picture, from your working years through retirement.