Check the conditions for subscribing to farmland pension for old-age security, and the expected amount
Will I be able to get a stable income when I get older and enter old age? I’m worried There is a system called ‘agricultural land pension’.
It is a system in which elderly farmers aged 60 or older receive pension-type pension funds every month, using their ‘farmland’ as collateral.
👉︎Farmland Pension Details 농지연금 가입조건
The farmland pension is based on Article 10 (projects) and Article 24-5 (projects to support farmers’ retirement life stability with farmland as collateral) of the ‘Korea Rural Community Corporation and Farmland Management Fund Act’. 좋은뉴스
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By liquidating farmland assets, it supports the stability of old-age farmers who lack funds for retirement, and in the long term, the main purpose is to expand and maintain the social stability network in rural communities.
What are the advantages of farmland pension?
1. For married couples, for life.
· If a farmer who was receiving a farmland pension dies, if the spouse succeeds to it, the farmland pension can continue to be received until the spouse dies. (However, it is limited to cases where the spouse at the time of application is over 60 years of age and has chosen pension succession.)
2. Possible farming or rental income.
You can earn additional income other than the pension because you can cultivate or lease your own collateral farmland while receiving a pension.
3. Stability secured with government financial support.
· You can receive pension payments more stably because the government budget is used as a source of finance and the government directly implements it.
4. Not claiming shortfall in pension obligations.
· When repaying pension debt, if there is any remaining amount after disposing of collateral farmland, it is returned to the heir.
5. Property tax relief.
Farmland worth less than 600 million won is fully exempted, and farmland worth more than 600 million won is exempted up to 600 million won.
6. Protection of pension assets from foreclosure risk.
· If you sign up for the ‘Farmland Pension Guard Account’, you can receive pension protection of up to 1.85 million won per month from the risk of foreclosure.
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What are the requirements for subscribing to Farmland Pension?
1. Eligible Age for Subscription
· As of the last day of the application year, the owner of the farmland is 60 years of age or older (in case of 2022, a person born before 1962.12.31)
– Here, the age is the civil law age, and it is calculated and applied based on the date of birth in the resident registration.
2. Applicant’s agricultural experience
· Farming experience must be more than 5 years.
– Farming experience of at least 5 years from the date of application for farmland pension is required.
– Farming experience does not have to be continuous right before the application date, and must be more than 5 years in total during the entire farming period.
3. Target farmland
– As of the farmland pension application date, the collateral farmland must satisfy all of the following requirements.
① Among the farmland under the Agricultural Land Act, farmland that is owned by the project target and is actually used for farming as land, paddy field, orchard under the designation of the government.
② Farmland owned by the project target for more than 2 years (includes the holding period of the inherited farmland)
③ The address of the person subject to the project (based on the address in the resident registration) is located in the city, county, or district where the mortgaged farmland is located or within a city, county, or district adjacent to it, or located in an area within 30km of the address and the mortgaged farmland farmland in it.
The requirements of ② and ③ are applied from newly acquired farmland after January 1, 2020 – Farmland for which no restricted real rights such as mortgages have been established.
However, farmland where the maximum amount of senior bonds is less than 15/100 of the price of collateral farmland is eligible for subscription.
– Farmland that is not subject to seizure, provisional seizure, provisional disposition, etc.
– Excluded Farmland
Land where illegal buildings are installed
· Farmland jointly owned by a person other than the person and their spouse
Excluded farmland as defined in the Farmland Pension Work Handling Guidelines, such as farmland in areas where development plans and development plans are designated, implemented, and announced, and development plans are finalized
Farmland acquired through auctions and public auctions (including sales and gifts after auctions and public auctions) after January 1, 2018
(However, as of the date of application for farmland pension, the applicant’s holding period of secured farmland is more than 2 years and the applicant resides (based on address on resident registration) within ’30km in a straight line to the city/gun-gu where the secured farmland is located and the city/gun-gu adjacent thereto or the secured farmland’ can be collateralized)
👉︎Preview of farmland pension sign-up process
4. Mortgage farmland price evaluation method
Subscribers can choose between 100% of the individually publicly announced land price in accordance with the “Act on Public Disclosure of Real Estate Prices” or 90% of the appraisal price in accordance with the “Act on Appraisal and Appraisers”.
5. Establishment of the ranking of mortgage rights
· If farmland owned by a third party (children, siblings) is used as collateral, you cannot subscribe to the farmland pension.
· In principle, the first priority is to set up a mortgage right, but if the maximum amount of the bond set on the collateralized farmland is less than 15% of the collateralized farmland price, you can join.
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What is the farmland pension payment method?
There are two types of farmland pension: ‘life-type’ and ‘period-type’. A life sentence is an annuity until death, and a term sentence is an annuity for a set period of time.
◎ Lifetime flat rate type: A type that pays a certain amount every month until the subscriber’s (spouse’s) death
◎Before and after thin type: For the first 10 years of subscription, more than the flat rate type, and less from the 11th year
◎Occasional withdrawal type: A type that can withdraw the required amount at any time within 30% of the total payable amount
◎Period fixed amount type: A type in which a certain amount is paid every month for a certain period of time selected by the subscriber
◎Management transfer type: At the end of the payment period, a type of receiving more pension on the premise of transferring ownership to the corporation
※Enrollment age by payment method
Payment method Life imprisonment/transfer of management fixed-term fixed-term (5 years) fixed-term fixed-term (10 years) fixed-term fixed-term (15 years)
60 years of age or older 78 years of age or older 73 years of age or older 68 years of age or older
※ Applied interest rate
– As for the loan interest rate, the applicant can choose one of the following when applying for farmland pension.
1. Fixed interest rate: 2%
2. Variable rate:
· Applicable interest rate for floating rate loans for agricultural policy funds
Recalculated every 6 months from the first monthly payment payment date
※ Grounds for suspension of payment of farmland pension
1. In case the farmland pension recipient dies and there is no spouse or non-succession subscription.
2. In the case where a farmland pension recipient dies and there is a spouse who has joined the succession conditions, if the spouse refuses or fails to complete the registration of ownership transfer of the secured farmland and takeover of farmland pension obligations within 6 months.
3. Where a farmland pension recipient loses ownership of the secured farmland.
4. Cases in which the farmland pension claim is expected to exceed the maximum amount of the mortgage, and the request for change of the maximum amount of the claim of the corporation is not complied with.
5. In the case of establishing a restricted real right on collateral farmland without the consent of the Corporation.
6. In case the secured farmland can no longer be used as farmland due to diversion, etc.
7. In case farmland is damaged or farmland is neglected without being used for farming (if it is not corrected within the deadline).
※ If any of the above reasons for payment suspension fall under 3, 5, 6, or 7 and are recognized as unavoidable reasons, farmland pension claims for the applicable collateralized farmland will be collected and farmland pension for the remaining collateralized farmland can continue to be supported.
Farmland Pension_Enrollment Conditions_Estimated Amount_Inquiry_4
If you enter the date of birth of the owner and spouse and the farmland price of the farmland information you own, you can search for the expected pension by pension type.
The result of the expected pension amount inquired in this way is not finalized, and you can check the expected pension amount in more detail through an employee consultation application.
👉︎Check the details of the submitted documents
Farmland Pension Deposit Amount Inquiry Method
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If the farmland owner is over 60 years of age (born before December 31, 1962), you can check the expected pension on the page above.
The expected farmland pension inquiry result is calculated based on the amount of the farmland price entered in units of KRW 1 million. For detailed expected farmland pension, you need to contact the branch of the farmland bank that has jurisdiction over your residence.
👉︎View my expected pension right away
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If the appraisal amount is KRW 630,000,000, it is the expected farmland pension inquiry result. The maximum amount of farmland pension payment per month is KRW 3 million.
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Let me give you a tip. Just before you turn 58 years old, try to win a cheap bid for something that has only been sold on blind farmland through a light auction.
If you sign up and apply for a farmland pension, that amount comes out every month until the death of not only you but also your spouse, so if you want to guarantee your old age, it’s really worth trying.
If you come out with a 700 million blind auction, you can live around 15-30% even if it is a little unusual land.
Up to this point, we have explained the conditions for subscribing to the farmland pension and how to view the expected amount.
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