Check Retirement Pension Returns and Payouts at a Glance

Retirement Pension Operation Report Revamp
Individual Dispatch Starting Next January

[Asia Economy Reporter Kim Hyo-jin] From now on, retirement pension subscribers will be able to receive a retirement pension operation report that allows them to see the actual rate of return and the expected pension amount at a glance.

The Financial Supervisory Service announced on the 9th that it has finalized the revised plan for the retirement pension operation report including this content and plans to send it individually to subscribers (companies and workers) starting from January next year.

The revised operation report includes the rate of return compared to the principal paid (cumulative and annual average), fund fees, and the expected pension amount after age 55.

The rate of return will be provided on the first page of the operation report in a newly established "Standard Summary." The total accumulated amount of asset and operation management fees directly borne by the recipient (the company for Defined Benefit (DB) type, and the worker for Defined Contribution (DC) type and Individual Retirement Pension (IRP)) will also be provided.

Fund fees and expected pension amounts will be included in the main body of the operation report.

This adds information on the total fund fee rate (total fee rate) and the total fee amount per 1 million KRW, which are separately charged when managing the accumulated funds through funds or performance-linked insurance.

Generally, since the total fund fees are automatically deducted daily from the accumulated funds, subscribers find it difficult to feel the fee rate. Also, many were unaware that these fees are charged separately from the asset and operation management fees incurred in the retirement pension account.

The Financial Supervisory Service plans to guide not only the fees at the fund management stage but also the fees at the pension receipt stage to encourage workers to receive their pensions. Most operators charge lower fees at the pension receipt stage than at the management stage.

The expected pension amount will be provided by age and year. This is to allow workers to check their retirement receipt amount and prepare in advance.

A Financial Supervisory Service official said, "Retirement pension subscribers will be able to regularly check their rate of return, which will increase their interest in it," and added, "It is expected to also help with preparing for post-retirement life."

This content was produced with the assistance of AI translation services.