Farmland Pension Disadvantages and Advantages, Simulated Calculation of Farmland Pension Receipt
Farmland Pension Disadvantages and Advantages, Simulated Calculation of Farmland Pension Receipt
If Korea’s representative retirement plan is the National Pension, the means of preparing for old age for farmers is the Farmland Pension.
Farmland pension can be seen as similar to national pension. 농지연금 수령액 계산
The Farmland Pension is a system implemented by the Korea Rural Community Corporation, and when you sign up for the Farmland Pension, you can receive a certain amount of Farmland Pension. 좋은뉴스
Before applying for a farmland pension, check the farmland pension subscription conditions, farmland pension disadvantages and advantages, and apply for a simulated calculation of farmland pension receipts!
Disadvantages of Farmland Pension
Disadvantages of Farmland Pension
What is Farmland Pension?
Farmland pension refers to a system in which those aged 65 or older receive a monthly pension payment as a stable fund for their retirement by collateralizing the farmland owned by elderly farmers.
Since the participation rate of farmers is not high, the farmland pension is expected to be a better retirement plan for farmers to stabilize their retirement life.
Farmland Pension Subscription Conditions Inquiry
Check out the farmland pension subscription conditions first!
This is because it is not a pension system that you can apply for unconditionally just because you have farmland.
□ Subscription age
As of the last day of the application year, the farmland owner must be 65 years of age or older
(There is a possibility that the age of 60 or older may change in 2022)
□ Farming experience
The applicant’s agricultural experience must be at least 5 years.
However, the period of 5 years does not have to be continuous, and it is possible if the total period of farming is more than 5 years.
□ Target farmland
① The farmland must be owned by the project target for at least 2 years.
In the case of inherited farmland, the holding period of the decedent is included.
② Farmland must be farmland that is actually used for farming, such as fields, rice paddies, and orchards.
③ The address on the resident registration of the subject of the project must be located within a city, county, or district where the secured farmland is located, and the straight-line distance between the address and the secured farmland must be within at least 30 km.
④ It must not be set as a restricted object such as foreclosure or mortgage.
Simulation calculation of farmland pension receipt
Quick view of farmland pension types
There are two types of farmland pension: term type and life type.
Term type is literally a way to receive annuity by setting a certain period, and it can be designated as 5 years, 10 years, or 15 years.
A life sentence is a way to receive pension payments for a certain period of time every month until death.
□ Before and after type: A type that receives a larger amount than the flat-rate type during the first 10 years of subscription and a smaller amount from the 11th year.
□ Temporary Withdrawal Type: A type in which the required amount within 30% of the total payment amount can be withdrawn at any time.
□ Fixed-term payment type: A type in which a subscriber can receive a certain amount every month for a certain period of time selected by the subscriber.
□ Management transfer type: A type that receives more farmland pension on the premise that the ownership will be transferred to the corporation at the end of the payment period.
Farmland Pension Receipt
Application for farmland pension can be made online at the official website.
After the application is submitted and the documents are received, a review will be conducted to determine whether the farmland price will be assessed based on the official land price or appraisal price.
When all examinations are completed, you can visit the local Rural Community Corporation and sign a contract.
First of all, apply for farmland pension right below!
> Go to Farmland Pension Application
Before applying for a farmland pension, try a simulation calculation of the farmland pension receipt!
As of 2018, the average monthly amount of farmland pension receipts was slightly over 980,000 won.
In addition to the farmland pension, if you directly cultivate or lease farmland, you can earn farming income as well.
So, try calculating the farmland pension receipt right below in advance!
> Simulation calculation of farmland pension receipt
Farmland Pension Advantages and Disadvantages
Before applying for farmland pension, please check the advantages and disadvantages.
□ Advantages of Farmland Pension
– When a person who received farmland pension dies, it is succeeded to his/her spouse and can continue to receive payments.
– While receiving a farmland pension, you can earn additional income by renting farmland or even cultivating it yourself.
– Since it is a pension system implemented by the government, you can receive payments more stably.
– Full property tax exemption is available for farmland worth less than 600 million won, and up to 600 million won for farmland worth more than 600 million won.
– When repaying pension debt, farmland is used as collateral for repayment, but the remaining amount is returned to the heir, and there is an advantage of not claiming any more even if there is a shortage.
□ Disadvantages of Farmland Pension
The biggest downside is that there may be opposition from your child.
It is a pension system that uses farmland as collateral, which is good for securing old-age life, but it cannot be passed on to children instead, so children may oppose it.
In addition, among the types of farmland pension, the period-type pension receives more pension than the life-term pension, but there is a disadvantage that it cannot be received after a certain period of time.
Today, we introduced the disadvantages and advantages of farmland pension, and how to simulate farmland pension receipt.
Please check carefully the terms and conditions for joining the farmland pension and make sure to apply.