No National Pension? Other ways to save for retirement

If the National Pension does not cover you, or you want more than it will give, Korea has private retirement accounts. They are not the National Pension, and this post is not advice to buy one.

Pension savings (연금저축)
A long-term account sold by banks, brokers and insurers. You can pay in up to 18 million won a year. You take it as a pension from age 55, after at least 5 years, spread over at least 10 years.

IRP (개인형 퇴직연금)
A retirement account in your own name. Your employer's retirement benefit goes into it, and you can add your own money. The same age 55 and 5-year rules apply.

The tax benefit, and who gets it

• The tax credit (세액공제) covers up to 6 million won a year paid into 연금저축, or 9 million won together with an IRP.
• The credit is 15% of the amount if your total income is 45 million won or less (55 million if you only have salary), otherwise 12%. With local income tax, 16.5% or 13.2%.
• It is for Korean tax residents with income. If you chose the 19% flat tax rate for foreign workers, you get no tax credits at all, including this one.
• Pension payouts are taxed at 5% under 70, 4% from 70 and 3% from 80, plus local tax, if your private pension income is 15 million won or less a year. Taking the money out early, not as a pension, is taxed at 16.5%.

Can a foreigner open one?
It depends on the institution. As of October 2026, Kiwoom Securities says foreigners cannot open its IRP, Mirae Asset's online opening excludes foreigners, and Kyobo Life opens IRP accounts for foreigners at a branch only. Ask before you go.

Ordinary savings are always open to you. See our posts on 예금 and 적금 and on deposit insurance.

It depends on your tax residency, your income, the 19% flat-rate choice, and the institution.

Next step: ask your bank or broker one question: "Can a foreign resident open 연금저축 or an IRP with you, and in person or online?"

Sources: Income Tax Act, article 59-3; Enforcement Decree, article 40-2; National Tax Service; Restriction of Special Taxation Act, article 18-2. Checked 11 October 2026.