Korea Investment Management said on the 10th that it published "ISA pension guidebook: From ISA to pensions." The book introduces an asset management strategy that links individual savings accounts (ISA) to pension accounts (pension savings and retirement pensions).
The guidebook focuses on presenting a "tax-saving investment roadmap" that investors can actually use, going beyond explanations of financial products. It explains, step by step, the investment process from building a lump sum using an ISA, to transfer of funds at maturity, and building income after retirement.
In particular, it presents a practical investment guide centered on long-term investment strategies using tax-advantaged accounts and methods of asset allocation through exchange-traded funds (ETF).
ETFs suitable for an ISA account were grouped by type according to investment profile. For aggressive investors: ▲ACE AI Semiconductor TOP3+ ▲ACE U.S. Nasdaq 100; for risk-neutral investors: ▲ACE U.S. Dividend Dow Jones ▲ACE Global Semiconductor TOP4 Plus; for conservative investors: ▲ACE Money Market Active, among others, were recommended.
For pension accounts, it proposed portfolios that adjust the share of risky and safe assets by age group. Those in their 20s to 30s are centered on long-term growth, those in their 40s to 50s on a balanced growth strategy, and during the withdrawal phase the goal is asset preservation and securing stable cash flow.
According to the guidebook, an ISA is a representative tax-saving account that can boost after-tax returns through various tax benefits such as offsetting gains and losses, tax exemption and separate taxation, and tax deferral. When including overseas stock ETFs or dividend assets that face higher tax burdens than general accounts, the tax-saving effect is maximized, so it emphasized prioritizing the inclusion of assets with high tax efficiency.
It also introduced a tax-saving strategy of transferring an ISA to a pension account after maturity. If maturity funds are transferred to a pension account within 60 days from the maturity date, an additional tax credit is available.
A pension account is a tax-saving structure based on long-term investment, allowing investors to maximize compound returns through a tax credit at contribution and tax deferral during the investment period, and to receive pensions at a low tax rate of 3.3% to 5.5% after retirement.
The guidebook can be downloaded free of charge without a separate sign-up from the ACE ETF website of Korea Investment Management.
Lee Hyo-jung, head of ETF marketing at Korea Investment Management, said, "To enhance investors' understanding and interest, this guidebook also includes AI-based comic content that explains the tax-saving investment process in simple terms," and added, "We aimed to deliver somewhat complex tax rules and account structures more intuitively."