Today, we will look at the reasons and shortcomings of the interim settlement of severance pay.
The largest of the future retirement is retirement, but these days, there are many people who want to receive interim settlement of severance pay.
There are various reasons such as setting up my own house and marrying my child, but what’s important is to find out if my reason is the reason for interim settlement of severance pay.
Retirement allowance interim settlement statistics
According to the National Statistical Office on the 28th, the number of people withdrawing retirement pensions in the middle last year was 51,782, up 29.2% from the previous year.
Reason for interim settlement of severance pay (simple)
Table of Contents
Reason for interim settlement of severance pay (simple)
Reason for interim settlement of severance pay (detailed)
the purchase of a house by a homeless person
Burden of security deposit for homeless people
Covering medical care costs for more than 6 months
Declaration of bankruptcy or decision to commence individual rehabilitation proceedings
Property damage caused by natural disasters
wage reduction due to the wage peak system
Disadvantages of interim settlement of severance pay
The reasons for interim settlement of severance pay (whether interim settlement is possible) are as follows.
the purchase of a house by a homeless person
Burden of security deposit for homeless people
Covering medical care costs for more than 6 months
Declaration of bankruptcy/decision of commencement of individual rehabilitation proceedings
the damage caused by a natural disaster
wage reduction due to the wage peak system
However, even if you know the above conditions, you need to listen to each condition in detail.
I thought I was eligible for the interim retirement allowance, but there are cases where it is possible if I am not or not.
Also, I hope you will find out the disadvantages of the interim settlement of severance pay and find out what kind of damage the interim settlement of severance pay will cause you and make a wise decision
Calculating my severance pay
Reason for interim settlement of severance pay (detailed)
the purchase of a house by a homeless person
Reason for interim settlement of severance pay
As of the date of application for interim settlement of severance pay, there should be no housing under the worker’s name.
Also, it only applies when you purchase a house in your name for the first time.
Application time: Date of signing of the housing sales contract ~ Within one month after registration of ownership transfer
Evidence documents: documents confirming whether a person is homeless or not, documents confirming whether a house is purchased
Burden of security deposit for homeless people
If a homeless person is covered by a deposit, he or she can pay the Jeon/Wallet deposit as a severance pay instead.
The condition is that there is no registered house in your name.
Application time: Date of signing the housing lease contract ~ within one month after payment of the balance
Evidence documents: documents confirming whether a person is homeless, and documents confirming whether a lease deposit or an owner’s deposit is necessary
Burden of security deposit for homeless people
Covering medical care costs for more than 6 months
If you, your spouse, or dependents need medical care for more than 6 months due to illness or injury, you can apply.
Application time: You can apply within one month even if you are undergoing medical treatment at the time of application, scheduled medical treatment, or treatment is completed
Evidence: A medical certificate, opinion, and long-term care certificate stating the duration of treatment and disease of at least 6 months.
Covering medical care costs for more than 6 months
Declaration of bankruptcy or decision to commence individual rehabilitation proceedings
If you have been declared bankrupt or decided to initiate an individual rehabilitation procedure, you can pay it after being confirmed as the reason for interim settlement of severance pay.
Time of application: When a decision to declare bankruptcy or commence individual rehabilitation procedures is made within five years from the date of application,
Evidence document: Bankruptcy declaration or decision to commence individual rehabilitation proceedings
a declaration of bankruptcy
Property damage caused by natural disasters
You can apply if you, your spouse, or your dependents have suffered physical/human damage due to a natural disaster.
Time of application: Within three months from the date of damage caused by a natural disaster
Evidence document: Documents confirming whether there is physical or personal damage depending on the damage
a natural disaster
wage reduction due to the wage peak system
What is a wage peak system? – A system that guarantees employment instead of reducing wages due to age growth
Application time: When wages are reduced due to the implementation of the wage peak system
Evidence document: Confirmation document for wage peak system application
wage peak system
Disadvantages of interim settlement of severance pay
Here are some precautions to know before applying for interim settlement of severance pay.
The most frightening thing is the high retirement income tax.
You also have to pay retirement income tax, but if you have a history of receiving interim retirement income tax, the retirement income tax for the next retirement allowance is very high
Disadvantages of interim settlement of severance pay
Why is that?
The reason is because of the ‘working period of work.
Retirement income tax is lower as the working period increases. However, if the interim settlement is received, the working period will be reinitialized.
So what do we do?
You have to apply for the “Special Provisions on the Settlement of Retirement Income”
When a retiree submits a receipt for withholding retirement income received during the interim settlement of severance pay, the company calculates the working period again from the time of employment.
The special case for retirement income settlement is to calculate retirement income tax by adding retirement retirement and past interim retirement, which reduces the tax rate as the period of service is retroactive to the first date of employment.
If we use the special case for retirement income settlement, we can reduce retirement income tax a lot by recognizing the long working period, right?
If you have any questions, please leave them in the comments. Thank you.