Pension authorities are taking steps to reform the system to address the issue where the starting point for retirement preparation varies depending on a parent's financial status or access to information.

The initiative aims to ensure fairness by providing all young people with the same opportunities that were previously enjoyed only by a select group with better access to information.

According to the Ministry of Health and Welfare's major work plan for the second half of 2026 released today (July 22), the government has decided to significantly overhaul the retroactive payment system to fundamentally prevent disadvantages caused by differences in National Pension enrollment history and access to information.

This is intended to lower barriers for young people to join the pension system and guarantee opportunities for retroactive payments.

Retroactive payment is a system that allows individuals to pay overdue premiums in a lump sum for periods when they could not make payments due to unemployment, business suspension, or studies, thereby extending their total enrollment period.

As the enrollment period increases, it has the effect of significantly boosting the future pension payout amount.

However, under the current National Pension system, one must have a record of paying at least one premium to be eligible to make retroactive payments for past gaps once they become financially stable.

Leveraging this, parents with better access to information have been using it as a financial strategy by paying the first premium on behalf of their children in the month they turn 18, thereby securing an enrollment history in advance.

By securing this history early, children can retroactively fill in up to 9 to 10 years of unpaid periods after they find employment, which significantly increases their future pension benefits.

In fact, according to the Ministry of Health and Welfare's data on youth enrollment as of December 2025, the National Pension enrollment rate for 18-year-olds in Seoul's three districts of Gangnam, Seocho, and Songpa reached 10.6 percent.

This is nearly three times the national average of 3.7 percent.

Inequality has persisted, as children from families lacking information and financial resources have been unable to use the retroactive payment system at all due to a lack of initial enrollment history.

As one of the measures to bridge this gap, the government has decided to support the first month of pension premiums (approximately 42,000 won) for young people aged 18 to 26 who have no prior payment history.

The policy aims to create an equitable enrollment history for all young people by having the state take the first step for them.

For young people who already have an enrollment history, a benefit of one additional month of recognized enrollment period will be granted.

This new system will be applied sequentially starting with those born in 2009 who turn 18 after the implementation date of January 1, 2027.

Therefore, those born in 2009 will be eligible to receive support for their pension premiums in 2027.

Those born in 2009 or later who wish to receive support can apply directly through the National Pension Service branch or the mobile app from the time they turn 18 until they reach 27.

In addition, the Ministry of Health and Welfare plans to further review specific system improvement plans during the second half of 2026 to ease requirements for retroactive payments and expand the scope of eligible applicants, while comprehensively considering overseas cases and the impact on fiscal stability.

Through this, the government plans to build a robust social safety net to ensure that ordinary citizens who missed enrollment periods due to a lack of information are not excluded from retirement security benefits.

(Photo: Provided by National Pension Service, Yonhap News)