A record number of Koreans claimed early payouts from the National Pension Service (NPS) last year, constrained by a lack of income source after retirement, data from the state-run pension fund showed Monday.

Accelerating the rush was people born in 1961. Many of the 62-year-olds found it difficult to wait a full year after the minimum age to receive their pension was extended to 63 from the previous 62, as revised by the pension fund.

They prioritized immediate monthly income despite at least a 6 percent annual reduction in payouts. Currently, recipients can claim as early as five years, with the total reduced benefits rising to up to 30 percent. They have to take a 6 percent decrease in payout for every year claimed early.

According to the NPS, the number of new early pension claims came to 112,031 last year, a first for the figure to top 100,000.

Most noticeable is the figure nearly doubling from about 60,000 in 2022. The year-on-year increase until then had not been as steep. It rose to 59,314 in 2022, up from 43,544 in 2018.

It was part of the rise in the number of overall early claimers. Over 856,000 claimed their payout early last year, including the new early claims, a gradual climb from about 581,000 in 2018.

The figure has already exceeded 885,000 in March, the highest since 1999 when the early claims were allowed.

The age requirement undergoes a revision every five years, as outlined by the 1998 revision put in place to bolster the fund’s sustainability. It came a decade after the fund’s establishment in 1988.

Previously, the minimum eligible age was 60, the legal retirement age at the time.

However, the 1998 revision changed the age to 61 from 2013 to 2017, meaning the age group was able to claim benefits in those five years.

The figure has since been and will continue to be updated to 62 (2018-22), 63 (2023-27) and 64 (2028-32).

Many of the 62-year-olds claimed the benefit, 한국을 a choice they found more reasonable than an outright lack of income source for a whole year, the NPS said.

“The rapid surge in early claims occurred in 2013 and 2018, coinciding with a new age requirement taking effect,” the NPS said. “The year-on-year jumps were 7.5 percent and 18.7 percent, respectively.”

The monthly payout for early claimers averaged 696,584 won ($510) as of end-February. The highest amount came to over 2.39 million won.

The NPS is the world’s third-largest market player, with over 1,000 trillion won under management.