The accumulated amount of retirement pensions at domestic securities firms has surpassed 100 trillion won. Along with the implementation of the retirement pension transfer system, it appears that a 'money move' is emerging toward securities firms in pursuit of higher revenue.
According to the financial investment industry on the 30th, the accumulated amount of retirement pensions at 14 domestic securities firms was recorded at a total of 103.9 trillion won as of the end of last year. This marks an increase of 7.4 trillion won (7.7%) compared to 96.5 trillion won at the end of September last year, exceeding 100 trillion won for the first time.
The annual growth rate of the retirement pension accumulated amount at securities firms has exceeded 14%, surpassing the growth rates of banks and insurance companies. Notably, the growth rate in the fourth quarter of last year (October to December) stood out, attributed to the influence of the retirement pension transfer system.
The retirement pension transfer system, which was fully implemented at the end of October last year, allows individuals to transfer their retirement pension accounts to other financial institutions without having to sell their existing investment portfolios. This makes it easier for retirement pension holders to switch, compared to the previous requirement of liquidating all invested products to cash when transferring a defined contribution (DC) account or an Individual Retirement Pension (IRP) account to another financial company.
In particular, the revenue rates of securities firms for retirement pensions are leading compared to other financial sectors. According to the Financial Supervisory Service, the average revenue rates for securities firms as of the fourth quarter last year were 6.9% for defined benefit (DB) plans, 9% for DC plans, and 9.2% for IRPs.
Securities firms anticipate rapid growth in the retirement pension market going forward and are competitively holding special events to attract customers for the transfer.
Mirae Asset Securities was the leading securities firm with the highest accumulated amount of retirement pensions as of the end of last year. Mirae Asset Securities held 29.2 trillion won, accounting for 28.1% of the total accumulated amount of securities firms.
The second place went to Hyundai Motor Securities with an accumulated retirement pension amount of 17.5 trillion won, followed by Korea Investment & Securities with 15.8 trillion won and Samsung Securities with 15.4 trillion won.