Mirae Asset Global Investments Publishes Revised Edition of 'Pension Investment Guide Using ETFs'

[Asia Economy Reporter Hwang Yoon-joo] Mirae Asset Global Investments announced on the 28th that it has published a revised edition of the 'Guide to Pension Investment Using ETFs.'

Mirae Asset Global Investments publishes the 'Guide to Pension Investment Using ETFs' to provide useful information to pension ETF investors. This revised edition is the third guidebook published this year, following editions in April and August. It introduces pension systems, tax benefits when investing in ETFs through pension accounts, and 31 TIGER ETFs suitable for pension account investments. In particular, it features various income-type ETFs, including monthly distribution ETFs that have recently gained investor interest.

The guidebook explains 'Why invest in ETFs for pensions: Customized asset allocation and tax savings at once!' It covers reasons for pension investment through ETFs and the tax benefits of investing in ETFs via pension accounts. ETFs facilitate diversified investment, disclose constituent stocks for transparency, have low fees suitable for long-term investment, and offer various tax benefits, making them effective for pension investment.

When investing in ETFs through a general account, ETF investment income, except for capital gains from domestic equity ETFs, is classified as dividend income and taxed at 15.4%. However, all ETF investment income within pension accounts is tax-deferred and taxed upon withdrawal as either pension income tax (3.3%~5.5%) or other income tax (16.5%), depending on whether it is received as a pension. Investors can contribute up to a combined annual maximum of 18 million KRW to pension savings accounts and retirement pension accounts (DC/IRP), with part of the contribution eligible for tax credits during year-end tax settlement.

However, there are restrictions on ETF investments depending on the pension account type. Leverage/inverse ETF investments are not allowed in pension savings accounts. In retirement pension accounts (DC/IRP), leverage/inverse and futures ETF investments are prohibited, but synthetic ETF investments are permitted. Additionally, in retirement pension accounts, ETFs with more than 40% investment in stocks and stock-related collective investment securities can only be invested up to 70% of the accumulated funds.

Meanwhile, the 'Guide to Pension Investment Using ETFs' can be found in the announcements section of the TIGER ETF website.

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