Fount "Artificial Intelligence Pension Savings Fund Records 15% Annual Return"

[Asia Economy Reporter Minji Lee] Interest in pensions with tax benefits is rising as year-end tax settlement results bring mixed feelings. AI investment specialist company Fount announced on the 22nd that the cumulative annualized return of investors who have invested in its pension savings fund for over one year is 14.56%.

As of the 10th, the cumulative annualized returns of investors who have invested in Fount pensions for more than one year were recorded as 17.22% for aggressive type, 15.55% for growth type, 12.52% for neutral type, 6.80% for stability-seeking type, and 5.18% for stable type, depending on investment tendencies.

The average investment amount was 3.28 million KRW, with the highest individual investment amount at 31.03 million KRW and the maximum number of investments at 60 times.

Among them, the top-performing investor is showing an annualized return of 36.25%, and notably, the proportion of profitable accounts among investors with over one year of investment is 100%, with not a single account recording a loss.

The largest group of subscribers was in their 30s at 39.4%, followed by 40s at 27.6%, 20s at 24.5%, 50s at 7.9%, and 60s at 0.6%. As smart financial planners aiming for both tax savings and retirement preparation increase, the proportion of younger generations is high.

Pension savings are investment products that offer not only tax benefits but also retirement preparation simultaneously. Especially, interest in pension savings has focused on workers who did not receive refund benefits during last year’s year-end tax settlement.

When subscribing to pension savings, one can receive a tax credit benefit of up to 4 million KRW per year (3 million KRW for high-income earners with annual income over 120 million KRW). The applicable tax credit rate is 16.5% for annual earned income under 55 million KRW and 13.2% for income above 55 million KRW.

Moreover, it is regarded as an essential retirement preparation product to endure the ‘retirement crevasse’?the 10 to 15 years without income between retiring from work and receiving the national pension (at age 65)?serving as retirement income, and many people are subscribing to it.

Fount explained, “Pension savings insurance operated by insurance companies is evaluated as not sufficiently fulfilling the role of retirement preparation products, recording annual returns in the 1% range.” According to the Financial Supervisory Service’s Integrated Pension Portal, as of the third quarter of last year, the one-year return on pension savings insurance was only 1.66% on average for life insurance companies and 1.77% for non-life insurance companies.

Kang Sang-gyun, Head of the Personal Asset Management Division, said, “Since pensions require long-term investment, joining as soon as possible allows you to maximize the magic of compound interest. Robo-advisors are one of the optimized methodologies for pension management, as more than half of the US’s representative retirement pension 401K is managed by robo-advisors.”

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