"DC Is Better Than DB": NH Investment & Securities Publishes THE100 Report Issue No. 117

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On the 11th, NH Investment & Securities 100-Year Life Research Center announced that it had published Issue No. 117 of the THE100 Report, which provides an in-depth analysis of the "2024 Retirement Pension Statistics Results."

The THE100 Report is a research publication by the NH Investment & Securities 100-Year Life Research Center that covers a wide range of topics, including stable lifetime asset management in preparation for the era of 100-year lifespans and aging trends, and has been published consistently since 2014.

This report analyzes the 2024 retirement pension statistics and, based on this, examines from multiple angles the current status of retirement pension system management and recent trend changes. In particular, it presents various strategies for efficiently managing office workers' retirement pension assets, which need to be operated over the long term.

The strategies proposed in the report are fourfold: the need to focus management on defined contribution (DC) plans rather than defined benefit (DB) plans; a shift from principal and interest-guaranteed products to performance-based products; choosing financial institutions based on investment management capabilities rather than stability alone; and avoiding retirement pension designs that assume early withdrawals.

Kim Dongik, Head of the NH Investment & Securities 100-Year Life Research Center, said, "For office workers, retirement pensions are in effect as valuable as a second National Pension for their old age assets," adding, "A correct understanding of retirement pensions and a shift to an investment-focused management strategy could lead to differences in the quality of life in retirement in the future."

Issue No. 117 of the THE100 Report can be found on the 100-Year Life Research Center section of the NH Investment & Securities website.

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