Home Pension Monthly Payouts to Be Adjusted for New Applicants from February 1

- Monthly payouts to be adjusted differently across age groups

- No change in the amount for existing subscribers

- For those interested in Home Pension, swift consultation recommended within January at their nearest HF branch office before the adjustments take place  

Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) announced on the 12th that it will adjust Home Pension monthly payouts for new applicants from February 1, 2021. 

Each year, HF recalculates the amount of Home Pension monthly payouts after reflecting ▲ house price movements, ▲ interest rate trends, ▲ life expectancy changes according to the Life Table, and other key variables and presents it to the Housing Finance Steering Committee for deliberation before making the final adjustments. 

Home Pension monthly payout amounts are determined by age (the younger of the subscriber and spouse) and home value at the time of subscription. Under the reverse mortgage program, the government guarantees the subscriber and spouse the same amount in monthly payouts for their lifetime, ensuring that they enjoy a financially secure retirement without worrying about possible home price fluctuations and a longer life. 

This year’s adjustments vary depending across age groups. Among the Fixed-Option Home Pension subscribers with an ordinary home, those younger than 69 at the time of subscription will see a slight increase in their monthly payout amounts, while those 69 or older will see a slight decrease. 

Since Home Pension provides the same amount of monthly payouts from the subscription year until the subscriber dies, existing subscribers will have no changes in the amount of their existing monthly payouts regardless of the adjustments.

An HF official said, “These monthly payout adjustments differ among age groups. In particular, for those who subscribe to the Ordinary-Home, Fixed-Option scheme at the age of 69 or older, a cut in their monthly payout amounts is planned from February 1. So, for those considering Home Pension subscription, it will be advantageous to be quick to seek consultation and complete the subscription process within January.”