How to Maximize Your Pension at 65: Expert Reveals the Best Way to Claim Labor and National Insurance, Plus Payment Timelines

In recent years, many workers have begun paying attention to receiving both Labor Insurance and National Pension after turning 65—a setup commonly referred to as the 'dual pension.' However, labor insurance expert Ms. Zhang warns against deliberately giving up Labor Insurance just to qualify for National Pension. She explains that while both Labor Insurance and National Pension can generally be claimed separately upon reaching age 65, provided eligibility conditions are met, the two systems differ significantly in coverage and payment terms. Labor Insurance offers more comprehensive protection, and workers who qualify should typically retain it rather than making choices that could harm their own interests just to receive National Pension.

According to Ms. Zhang, National Pension is primarily designed to provide basic protection for individuals not covered by Labor Insurance or other social insurance programs. Therefore, for workers who can maintain Labor Insurance through employment, the benefits of Labor Insurance generally outweigh those of National Pension in terms of both protection and retirement payouts. The so-called 'dual pension' should be seen as a natural right that arises when conditions are met—not something to actively pursue by altering one’s insurance status.

Regarding whether both Labor and National Pensions can be received simultaneously, Ms. Zhang also clarifies the timeline for when pension payments are deposited. She notes that processing times vary significantly depending on the type of benefit. For lump-sum claims, the process is relatively straightforward. If eligibility and documentation are in order, disbursement typically takes about two business weeks.

In contrast, old-age pension payments are not deposited immediately after application. Instead, applicants usually receive their first payment around the end of the month following their application. Workers planning for retirement should therefore time their applications carefully to avoid disruptions in post-retirement cash flow.

Disability and workers’ compensation claims, on the other hand, have the most unpredictable processing times. Ms. Zhang explains that these cases require medical record reviews, assessments of ongoing treatment, and determinations of permanent disability. In some cases, specialized medical panels may be involved. Additionally, the Labor Insurance Bureau verifies the applicant’s coverage status, employment history, and salary records—including whether there was a sudden, significant increase in insured salary shortly before the claim. As a result, the entire review process is more complex.

Because disability and workers’ compensation claims require multi-faceted verification, Ms. Zhang warns that there is no fixed timeline for disbursement—some cases may take six months or longer. Applicants who wish to track their progress can use official inquiry channels provided by the Labor Insurance Bureau. She also notes that many people mistakenly assume their application is stalled if they don’t hear back for a while. However, if no additional documents are requested, it often means the application is progressing normally, and excessive anxiety is unnecessary.

Moreover, many workers confuse Labor Insurance with Employment Insurance. Ms. Zhang points out that the two differ not only in eligibility but also in the scope of protection. For example, individuals who join through occupational unions are typically covered only by Labor Insurance, not Employment Insurance. In contrast, employees at regular companies, whose employers handle enrollment, are usually covered by both.

The scope of protection also differs significantly. Labor Insurance primarily covers benefits related to childbirth, illness, disability, old age, and death—essentially addressing life’s major risks: birth, aging, illness, disability, and death. Employment Insurance, on the other hand, focuses on unemployment-related support. For instance, to receive unemployment benefits after being laid off, applicants must have sufficient Employment Insurance coverage and meet other eligibility criteria. Similarly, parental leave allowances are provided under the Employment Insurance system—those without Employment Insurance or with insufficient coverage cannot access these benefits through Labor Insurance alone.

Ms. Zhang emphasizes that Labor and Employment Insurance serve different functions. When facing retirement, unemployment, or caregiving needs, workers should first confirm which insurance programs they are enrolled in and plan accordingly based on their coverage history and personal circumstances. Misunderstanding the systems could lead to missing out on benefits they are otherwise entitled to.