The revenue of pension savings funds last year was found to be more than double the overall annual pension savings revenue. There are calls to consider active investment by utilizing the tax benefits of pension savings, low fees, and unlimited asset management.
The Financial Supervisory Service reported on the 31st that the annual revenue of pension savings funds was 7.8% last year. This level exceeds twice the overall pension savings revenue of 3.7%.
As of the end of last year, the pension savings accumulated funds amounted to 178.6 trillion won, an increase of 10.8 trillion won (6.4%) compared to the end of the previous year. The growth rate over the past five years has reached 24.5%. The most sold pension savings products were in insurance companies, which recorded 115.6 trillion won. Financial investment companies had 35.9 trillion won, banks had 19.1 trillion won, and public institutions had a net of 800 million won.
By product, pension savings insurance was the most at 115.5 trillion won, followed by pension savings funds at 40.4 trillion won, pension savings trusts at 14.7 trillion won, and pension savings deduction insurance at 8 trillion won.
Although the pension savings accumulated funds continue to increase, the revenue appears to be stagnating. The annual revenue of pension savings remained at 3.7%, a decrease of 0.9% from the previous year's 4.6%. This level slightly exceeds the inflation rate. By product, pension savings funds performed best with a revenue of 7.6%, followed by pension savings trusts at 5.6% and pension savings insurance at 2.6%. While pension savings insurance applies the declared interest rate after deducting business expenses from the premiums, pension savings funds are linked to stock market revenues.
The number of accounts starting to receive pension savings last year was recorded at 1,902,000. However, the average pension amount received was 2.95 million won, which is a slight decrease from 2.97 million won the previous year. Accounts receiving 5 million won or less accounted for 84.1% of the total.
The Financial Supervisory Service noted, "While the National Pension can be received from age 65, pension savings can be received from age 55," adding that "for those considering how to prepare for life after retirement, pension savings alongside retirement pensions can be a solution."