3050 Pension Ants "Retirement Pension, Prefer TDF Over Principal Guaranteed"

Samsung Asset Management Survey
3050 Pension Ants Prefer TDFs Over Principal-Protected Products, Seeking 6-8% Annual Returns

[Asia Economy Reporter Hwang Junho] More than half of retirement pension subscribers in their 30s to 50s want an annual return rate of 6% or higher. Accordingly, 6 out of 10 respondents expressed willingness to utilize the default option system. In particular, the preferred retirement pension product was identified as 'TDF (Target Date Fund)' rather than principal-guaranteed products.

Samsung Asset Management announced this on the 7th after analyzing 537 individual investors subscribed to DC-type and IRP-type retirement pensions among users of its fund information comparison platform 'Fund Solution'.

Respondents had high expectations for pension returns. The highest response rate (8%) was for those wanting an annual return of 6-8%. Following that, a significant number (26.0%) chose 9-10%. Next were 4-5% (18.9%), 11-14% (7.9%), 15% or more (6%), and 3% (3.7%) in that order.

By age group, investors in their 30s to 50s who had just started or accumulated some funds for retirement pensions also expected an annual return of 6-8% (36%). Additionally, 27% hoped for a return of '9-10%'. Investors aged 60 and above also accounted for 72% of the total in hoping for an annual return of 6-8%.

Regarding the necessity of retirement pension investment, 81.5% of respondents answered 'absolutely necessary,' the highest proportion. Other responses included 'necessary but not interested' (13.2%), 'not necessary' (3.5%), and 'don't know' (1.6%).

Analyzing by age group, the proportion answering 'absolutely necessary' was high among those in their 20s (93.8%), 50s (91.0%), and 60s (92.0%).

Regarding the intention to invest in retirement pensions through the default option system, 'intend to invest' was the most common response at 64.8%. By age, the proportion responding 'intend to invest' ranged from about 56% to 67%, all above half.

Among default option products, TDF had the highest preference (40.1%). Next were balanced funds (28.8%), principal-guaranteed type (deposits) (13.4%), social overhead capital (SOC) funds (7.9%), stable value funds (4.9%), and 'don't know' (3.8%) in that order.

Lee Dong-eun, head of Samsung Asset Management’s Pension WM Marketing Team, said, "Individual investors appear to have a positive perception of retirement pension investment and the implementation of the default option." He added, "Starting this October, qualified retirement pension products will be officially approved, and thereafter workers will be able to subscribe to default option products. Samsung Asset Management will support increasing investors’ retirement pension returns to their desired levels by enhancing understanding of the default option system."

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