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How to Receive Yellow Umbrella Pension Funds!

  • Written Language: Korean
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Created: 2024-11-15

Created: 2024-11-15 17:11

The Yellow Umbrella Retirement Savings Plan is a retirement savings system for small business owners and the self-employed to prepare for unexpected situations such as business closure or death. Starting June 2024, natural disasters and illnesses have been added to the coverage, allowing more business owners to benefit.

How much can I receive from the Yellow Umbrella Retirement Savings Plan?

The benefits are calculated by adding compound interest to the contributions made by the subscriber. The longer the contribution period and the larger the contribution amount, the greater the benefits.

  • Basic Benefits: In case of business closure or death, it is calculated by adding an interest rate of 0.3% per year to the base interest rate for 15 years.
  • Additional Benefits: Additional benefits such as encouragement grants and re-enrollment grants may be added.

Payment Methods for Yellow Umbrella Retirement Savings Plan Benefits

Benefits can be received as a lump sum, installment payments, or an interim settlement.

  • Lump Sum Payment: The entire amount is paid at once.
  • Installment Payments: For those aged 60 or older with benefits of 10 million won or more, payments can be spread over 5, 10, or other desired periods.
  • Interim Settlement: In the event of a natural disaster, illness, or other specified reasons, an interim settlement can be received as a lump sum while maintaining the contract.

How to Apply for Yellow Umbrella Retirement Savings Plan Benefits

Yellow Umbrella Pension Fund Application Reasons for Payment

Yellow Umbrella Pension Fund Application Reasons for Payment

Applications can be easily submitted through the Yellow Umbrella Retirement Savings Plan website. However, interim settlements require an in-person application.

Why should I join the Yellow Umbrella Retirement Savings Plan?

  • Tax Deduction Benefits: Up to 5 million won can be deducted from annual income tax.
  • Protection from Seizure: Contributions are exempt from seizure, protecting your funds.
  • Retirement Planning: It allows you to prepare retirement funds while securing retirement benefits.

Yellow Umbrella Retirement Savings Plan: Frequently Asked Questions (FAQ)

  • Who is eligible for the Yellow Umbrella Retirement Savings Plan?
    • Anyone who is a small business owner or self-employed is eligible.
  • How can I join the Yellow Umbrella Retirement Savings Plan?
    • You can join by visiting a nearby bank or branch of the Federation of SMEs, or online.
  • How much should I contribute to the Yellow Umbrella Retirement Savings Plan?
    • You can contribute freely from 10,000 won per month.
  • What happens if I cancel my Yellow Umbrella Retirement Savings Plan early?
    • In the event of early cancellation, you will receive the amount of contributions paid minus the cancellation fee.

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