Farmland Pension Subscription Conditions and Receipt Calculation Method
Many urban workers are preparing for a relatively stable old age through retirement pensions. However, most of the elderly farmers in rural areas have not been able to prepare for their old age.
In consideration of these rural realities, Korea Rural Community Corporation has introduced and implemented the Farmland Pension System since 2011, which provides monthly pension stabilization funds in the form of old-age life using owned farmland as collateral. In this time, we will look at the conditions for joining the Farmland Pension and how to calculate the amount to be received. 농지연금 수령액 계산
Farmland Pension is a very useful system as a supplementary pension system that can supplement the public pension system for the elderly in rural areas who are experiencing difficulties due to lack of living funds with only personal pension and inadequate public pension. 좋은뉴스
It is stable because it is implemented with the government budget, and additional income can be obtained by farming on the farmland or renting the farmland.
Farmland Pension subscription conditions are 65 years of age or older and 5 years or more of farming experience. In the case of agricultural experience, it is not necessary to have a continuous relationship right before the application date.
In other words, if the total farming period is more than 5 years, it becomes a condition for joining the farmland pension. In the case of agricultural land, the land must be an orchard, field, or rice field, and must be currently farming land.
However, land with illegal buildings installed, farmland co-owned by a person other than the principal and his/her spouse, development area, and development plan are designated, implemented and announced, and the development plan is confirmed.
You can choose one of five payment methods for farmland pension. In the fixed-rate life sentence, a fixed amount is paid every month until the subscriber’s (spouse’s) death.
The before-and-after type is paid more than the flat-rate type during the first 10 years of subscription and less from the 11th year. With the temporary withdrawal type, the necessary amount can be withdrawn at any time within 30% of the total payable amount.
The fixed-term fixed-term payment type pays a certain amount every month for a certain period selected by the subscriber, and the management transfer type pays more pension at the end of the payment period, on the premise of transferring ownership to the corporation.
Conditions for Subscribing to Farmland Pension Subscribers can choose between 100% of the individual publicly announced price or 90% of the appraisal amount according to the Appraisal Evaluation Act for the price evaluation method of farmland as collateral.
The amount of farmland pension repayment is limited within the range of the disposal price of collateral farmland. In case of death, the collateral farmland is disposed of, and the remaining amount is returned to the heir, and even if there is a shortfall, the heir is not charged, so it is a system that is different from loans from existing financial institutions.
If your spouse is over 60 years of age at the time of subscription, you can subscribe to the spousal succession type, so that your spouse can inherit your pension after your death.
Farmland Pension subscribers can receive property tax exemption for collateral farmland. In the case of farmland provided as collateral to receive the retirement living stabilization fund, property tax is exempted for farmland with a publicly announced land price of 600 million won or less, and if it exceeds 600 million won, only property tax is imposed on the excess amount.
If you have confirmed the conditions for joining the farmland pension, it is a good idea to calculate the farmland pension receipt amount. In the case of farmland pension, you can calculate it in advance on the farmland bank integrated portal.
After accessing the integrated farmland bank portal site, you can easily check the farmland pension receipt amount by selecting the expected pension inquiry from the farmland pension menu.
If you meet the conditions for joining the farmland pension, you can apply for the farmland pension. You can apply for Farmland Pension through the Farmland Bank/ Farmland Pension portal.
The farmland pension system is a welfare system for farmers that guarantees a stable old age for elderly farmers as a welfare policy for the common people in the aging era. Farmland Pension is a way for the elderly in rural areas to raise funds for their old age living without relying on their children.