Self-Employed Pension Calculator

Optimal pension strategy for business owners

Calculate the optimal combination of National Pension, Pension Savings, and IRP for self-employed and freelancers. Check tax benefits and expected pension at a glance.

๐Ÿช Self-Employed Pension Features

Self-employed pay 9% of income to National Pension entirely by themselves. However, by utilizing Pension Savings and IRP, you can get tax credits up to 7 million won, combining tax savings and retirement preparation. For self-employed with irregular income, pensions provide stable retirement income.

๐Ÿง“ Pension Calculator

Expected Monthly Pension

2,266,033์›

Income Replacement: 64.7%

National

840,000์›

Private

1,426,033์›

๐Ÿ›๏ธ National Pension

Monthly Contribution157,500์›
Total Contribution3780๋งŒ์›
Expected Monthly840,000์›
Replacement Rate24.0%

๐Ÿ’ฐ Private Pension

Monthly Contribution300,000์›
Total Contribution1.26์–ต์›
Accumulated (Compound)3.42์–ต์›
Expected Monthly1,426,033์›
Annual Tax Credit594,000์›

๐Ÿ“Š Income Replacement Analysis

Current Monthly Income3,500,000์›
Expected Pension2,266,033์› (64.7%)

Recommended: 70%+ replacement

โš ๏ธ Need additional 183,967 monthly.

๐Ÿ’ก Pension Savings Comparison

MonthlyTax Credit/yrAccumulatedMonthly Payout
100,000์›198,000์›1.14์–ต์›475,344์›
200,000์›396,000์›2.28์–ต์›950,688์›
300,000์› โ†594,000์›3.42์–ต์›1,426,033์›
400,000์›660,000์›4.56์–ต์›1,901,377์›
500,000์›660,000์›5.70์–ต์›2,376,721์›
๐Ÿง“

Pension Calculation Result

Monthly 2,266,033์›

โœจ National 840,000 + Private 1,426,033

Income replacement 64.7%

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Note

This is an estimate. Actual pension amounts vary based on contribution history. Contact the NPS (1355) for accurate information.

๐Ÿ“ Pension Calculation

National Pension = Monthly Income ร— 9% (self-paid)

Tax Credit = (Pension Savings 4M + IRP 3M) ร— 16.5%

Max Tax Credit = 7M ร— 16.5% = 1.155M KRW

๐Ÿ“ How to Calculate

  1. Enter monthly average business income
  2. Check current National Pension payment
  3. Enter Pension Savings/IRP contribution plan
  4. Review expected tax credits and pension
  5. Build optimal pension portfolio

๐Ÿ“Š Self-Employed Tax Credit Simulation

Annual IncomePension SavingsIRPCredit RateRefund
Under $33K$3,300$2,50016.5%$957
$33K-$46K$3,300$2,50016.5%$957
Over $46K$3,300$2,50013.2%$766
Over $83K$2,500$2,50013.2%$660

๐Ÿ’ก Self-Employed Pension Strategy

  • Extend coverage period with voluntary National Pension
  • Fill Pension Savings 4M first, then add IRP 3M
  • Maintain minimum contribution in low-income years
  • Additional deductions with Small Business Mutual Aid
  • Keep Pension Savings after closure for compound effect

โ“ FAQ

Is National Pension mandatory for self-employed?

If you have business income, enrollment is mandatory. However, if income is very low or none, you can apply for payment exemption.

Which is better: Small Business Aid or Pension Savings?

Enroll in both. Small Business Aid offers income deduction (max 5M), while Pension Savings offers tax credit (max 4M) - different benefit structures.

What happens to pension if I close my business?

National Pension coverage continues, and Pension Savings/IRP remain if not terminated. Contributions become optional after closure with no income.

๐Ÿ“š Local Method & Assumption Guide

Formula Logic

Core formulas use public finance, loan, ratio, and unit conversion standards.

Source Scope

References follow publicly available standards and country-level common practices.

Assumptions

Taxes, fees, rates, and limits vary by region and institution.

Result Interpretation

Use this result as a baseline scenario. For decisions, compare with your lender quote and local tax treatment.

Locale Preset

Currency: USD

Units: imperial

Tax logic: US payroll estimate

Regulatory Note

This tool uses regional presets for estimation. Contract terms and legal limits may differ by lender, bank, or local law.

Recommended Next Actions

  • Compare at least 2-3 local providers before final submission.
  • Re-check fees, tax treatment, and prepayment clauses in writing.
  • Run a stress scenario with +1-2% interest and lower income.

Before a real financial decision, confirm with local institution rules.

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