Many elderly people feel that even with just one house, they don't have enough money to spend, but although there is a housing pension system that allows you to receive monthly pensions using your current home as collateral, not many people are enrolled in it. Moon Hak-gi, 66 years old this year, joined a housing pension five years ago in Seoul with an apartment in Eunpyeong-gu, Seoul, and with his existing pension income of 1 million won plus the housing pension, he can now use about 2.5 million won per month, which has improved his quality of life. The housing pension is a system where you can live in your own home and receive a pension as collateral. If you start receiving from age 65 with a house valued at 1 billion won, you can receive about 2.4 million won per month for life. After death, the settlement is done by comparing the pension amount already paid with the house price at the time of death, If the house price is higher, the remaining amount is inherited, and even if the price is smaller, there is no additional burden. Houses with an official price of 1.2 billion won or less can be enrolled by the Korea Housing Finance Corporation, while those over 1.2 billion won can be enrolled by banks. Despite the advantage of creating cash flow in old age,,, the housing pension subscription rate is only 2%. To raise the subscription rate, the government will increase the housing pension payout by more than 2% starting next month, based on a house valued at 1 billion won. It will increase by about 100,000 won per month. If the housing pension becomes more active, it is expected to lower the elderly poverty rate, which is twice the OECD average, while also encouraging money tied up in real estate to circulate in the market. The Bank of Korea currently analyzes that if all elderly people who intend to subscribe join the housing pension, Korea's GDP could increase by up to 0.7%.
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