Farmland Pension Calculation and Subscription Conditions (How much can I receive?)
In order to join the Farmland Pension, you must be over 60 years of age and have been engaged in agriculture for at least 5 years. The expected subscription amount can be easily calculated on the integrated farmland bank portal. So, let’s take a closer look at the contents, advantages and disadvantages of the farmland pension system. 농지연금 가입조건
[Contents]
What is Farmland Pension?
Farmland Pension Subscription Conditions 좋은뉴스
annuity payment method
How Much Can I Get? (Calculation of Expected Earnings)
Advantages of Farmland Pension
Disadvantages of Farmland Pension
How to apply
required documents
What is Farmland Pension?
Farmers who make a living from farming will find it difficult to work any longer as they get older. The Farmland Pension is a system that provides pensions with farmland owned as collateral to ensure the old age of farmers. Rural Community Corporation pays monthly pension or lends money at low interest rate when subscribing to the pension. The amount of the pension payment depends on the value and area of farmland.
Farmland Pension Subscription Conditions
The main purpose of the farmland pension is to provide pensions to aged farmers. For this reason, in order to join, you must be an elderly person who is unable to continue working and actually engage in agriculture. Enrollment requirements must satisfy all of the following: ① Age 60 or older, ② Farming experience of 5 years or more, ③ Ownership of the target land for 2 years or more, ④ Residence and farmland located within 30 km.
annuity payment method
Farmland pension is divided into two types, life-term and term-type, depending on the payment method. In addition, we are providing pensions by creating products that meet the needs of pension subscribers. Payment method can be changed only once within 3 years after subscription.
life sentence
Life imprisonment is a way of paying pension until the subscriber dies. Life imprisonment is divided into three types according to the annuity amount by payment period.
Fixed amount for life: A fixed amount is paid every month until the death of the subscriber
Before and after: A large amount is paid during the first 10 years of subscription, but less is paid from the 11th year
Occasional withdrawal type: The required amount can be withdrawn at any time within the limit of 30% of the total pension payable amount (selectable between fixed and variable rates, fixed rate is 2% per year)
term type
Term type is a payment method in which you receive pension only for the period set at the time of subscription. Term type is divided into fixed-term fixed-term type and management transfer type. Fixed-term fixed-term payment allows you to receive a fixed amount every month for a selected period, and you can choose from 5, 10, and 15 years. In the case of transfer of management, when the pension payment period ends, the collateral land will be returned to the Rural Community Corporation and the pension can be increased.
How Much Can I Get? (Calculation of Expected Earnings)
You may be wondering how much you will receive if you sign up for a farmland pension. The estimated receipt amount can be easily viewed online at the integrated farmland bank portal. In order to look up the estimated amount, you must know the published price or appraised value of your farmland.
Advantages of Farmland Pension
The farmland pension is not free because you receive a pension using your farmland as collateral. In order to determine whether or not to join, it is necessary to know what advantages the farmland pension has.
Spouse succession in case of death of subscriber
When a subscriber dies, the spouse left alone may find it difficult to make ends meet. If your spouse is 60 years of age or older at the time of your first application and you have selected pension succession, your spouse can continue to receive the pension even if the subscriber dies.
In addition to pension, additional income is possible
Farmland pensions receive pensions with farmland as collateral, but it does not mean that farmland cannot be used. You can continue cultivating and leasing your mortgaged farmland, so you can earn additional income while receiving your monthly pension.
Safe with government funding.
Since the farmland pension is a project directly implemented by the government using the budget, the risk of not receiving the pension is low. Therefore, it can be a suitable product for the elderly who need a stable cash flow.
You can save money with property tax reduction
Farmland entrusted as collateral can be exempted from property tax up to KRW 600 million. For example, if the value of farmland is less than 600 million won, property tax is fully exempted, and in the case of 1 billion won, property tax is levied only on 400 million won exceeding 600 million won.
Disadvantages of Farmland Pension
It is difficult to properly recognize the value of farmland.
When subscribing to the pension, the value of farmland is evaluated by the appraised value or officially announced land price. However, in most cases, the appraisal value or official land price is lower than the market price, so the amount through sale may be greater than the value of farmland evaluated for pension subscription.
Rather, damages when farmland prices rise
The value of farmland is evaluated when you first sign up for the farmland pension, and the size of the pension is changed accordingly. Therefore, even if the farm value increases during the pension subscription period, there is no choice but to receive a certain amount. If you expect that the value of your farmland will continue to rise, you may be at a disadvantage in joining the farmland pension.
How to apply
Application for membership can be made online through the integrated portal of Farmland Bank. The detailed application method is as follows. At this time, you can choose public land price and appraisal as a way to evaluate farmland value. In the past, there was an enrollment fee to join the annuity, but now the enrollment fee has been abolished.
Online application through the integrated farmland bank portal
Submit the required documents along with the application form by mail or by visiting the branch office.
required documents
The documents to be submitted after applying online are as follows.
When applying: Copy of ID card, certified copy of register, real estate comprehensive certificate, confirmation of registration from the Ministry of Agricultural Support or agricultural business
When requesting an appraisal: appraisal request agreement, appraisal fee payment request form
When signing an agreement: Certificate of family relationship, copy of resident registration, certificate of seal, copy of bankbook, certificate of registration right
So far, we have looked at the details, advantages and disadvantages related to farmland pension. When subscribing to farmland pension, please familiarize yourself with the method of calculating the expected amount and conditions for subscribing, and prepare for your old age.