This study estimates the individual’s social security wealth using the Korea Labor Panel Data (KLIPS) and investigates the effect of pension wealth by income level on household savings and choice of asset composition respectively based on panel analysis. In addition, we analyze the marginal effect of pension wealth by income level according to the household debt burden level based on the mortgage recognition rate (LTV) of the household and examine the effect of pension wealth on household financial assets and non-financial assets. The results show that the pension wealth crowds out househole net worth and the crowding-out effect decreases as the income level increases. It is found both in household financial assets and non-financial assets. When the household debt burden level is taken into consideration, the households are analyzed to construct more savings and assets for consumption smoothing as the debt burden level increases. Financial assets and non-financial assets are analyzed in detail, and it is found that the pension wealth crowds out the real estate assets and the protection insurance which is a long-term saving to prepare for old age. These results suggest that current income inequality may lead to the imbalance of old-age income after retirement. At the same time, it is confirmed that the national pension plays a role of substitute for long-term savings by performing the old-income guarantee function. It means that the household’s non-financial assets can be used as a means of personal retirement.