I switched to retirement pension… “Honey, 30% interest for 5 years”

Good interest rate products will disappear next month due to irregular special sales regulations.
Managers in their 50s, hurry up to switch from DB to DC

. “It will be difficult for my salary to rise in the future…”

If you are a manager in your 50s and have a long life, and suddenly this thought occurred to you at the company, this is the time to consider retirement pension. It’s time to check. This is especially true for long-term employees who are about to enter the peak wage system, where their salaries are drastically cut. Depending on how you manage your retirement pension, the amount of money you receive after retirement is significantly different, and your quality of life also changes.

Hwang Myeong-ha , a researcher at the NH Investment & Securities 100-year Research Institute, said, “Even if you regret looking at your severance pay as you approach retirement, you cannot turn back time. No matter how you use it later, think about ways to accumulate as much severance pay as possible while you are still on active duty. ” “You have to do it,” he advised. We learned about ‘retirement benefit literacy’ that people in their 50s who have lived half their lives must know.

✅Retirement pension: An era of self-sufficiency begins.

“Retirement pension? “I don’t know anything…”

There are many office workers who don’t know what their retirement pension is or how it is operated. There are two main types of retirement pension. These are the defined benefit plan ( DB ) , which the company runs on its own, and the defined contribution plan ( DC ), which I manage myself . If you have never worried about severance pay management while working at a company, it is highly likely that you are a DB .

If there are many opportunities for promotion, high wage growth, and long-term employment, DB is overwhelmingly advantageous. However, if you are a manager in your 50s who has been working longer days than working for the company, you need to hit the calculator and weigh the pros and cons. This is because it may be more advantageous to switch to DC rather than staying in DB . Severance pay is calculated by multiplying the average wage for 30 days before retirement by the period of continuous employment. For example, let’s assume that Manager Kim, who is 55 years old, has worked at his current job for 20 years, and his average wage for the past 30 days (salary for the three months before retirement divided by the number of working days) is 5 million won. If Manager Kim leaves the company right now, the severance pay he will receive is 100 million won (5 million won x 20 years). However, if Manager Kim entered the wage peak system and his 30-day average wage at age 60 was 2.5 million won, his severance pay would be reduced to 62.5 million won (2.5 million won x 25 years). A miserable situation arises where even though you work longer, your severance pay is reduced. If Manager Kim wants to avoid future misfortune, changing the severance pay management system is essential. Just like making an interim settlement of severance pay, you switch from DB to DC when you think wages have reached their peak . When converting from DB to DC in this way , the severance pay is intermediately settled (KRW 100 million in Manager Kim’s case) and deposited into an account in the person’s name. Although it is an account in my name, because it is retirement funds, early withdrawal is not possible, except for a few exceptions.

✅ DC high interest rate special offer will likely disappear next month DB

, for which the company is responsible, accounts for 60% of the entire retirement pension market, which is still much higher than DC (26%). I have lived my entire life without paying attention to managing retirement funds, but it is true that I am scared when I become a DC subscriber and have to manage my own retirement funds. In the era of ultra-low interest rates in the 1% range, maintaining DB was a wise choice. However, in this era of high interest rates, we need to change our thinking. If you are a manager in your 50s with stagnant wage growth, DC may be a better opportunity. This is because the interest rates on principal-guaranteed products that can be rolled out in DC without knowing anything about investment have increased significantly. Mr. Lee, in his 50s who works at a small business, switched his retirement pension from DB to DC last week, and was surprised when he saw the interest rate on the product list. Mr. Lee said, “It is a principal guaranteed product, and the interest rate is 6% per year and it is possible to sign up for a long term of 5 years, so when I calculated it, the total was 30 % . ” “Profits will likely increase threefold,” he said.

A retirement pension manager at a large financial company said, “As the retirement pension market grows, the competition to attract DCs is also intensifying. In order to attract new customers, we are selling products that offer special interest rates at a loss.” This company offers customers who switched from DB to DC an interest rate of 5.85% per annum and 6% per annum on 3-year and 5-year maturity principal guaranteed products, respectively. Since the 5-year long-term rate of return for Korea’s retirement pension is 1.5% per year, 6% per year is significant.

However, these sweet interest rate products are expected to disappear from next month. This is because the financial authorities believe that selling high-interest special products while giving up margins to increase the number of retirement pension subscribers is excessive and plan to regulate them starting next month. An official from the financial authorities said, “Some financial companies have a practice of selling high-interest products by paying an additional fee (1 to 1.5% commission),” and added, “We plan to take action soon to eliminate this practice in order to normalize the retirement pension market.”

An official in charge of retirement pension at an insurance company said, “I have been working in retirement pension for 10 years, and this is the first time I have seen such a high interest rate even though it is a principal guarantee type. Once the regulations are implemented, it will be difficult to see products with a high interest rate of 6% per annum like the present.” I expected it. In fact, this means that the high-interest special sale products released this month are the last.

“In our country, there is a lot of household debt, so it is difficult to raise interest rates as drastically as in the United States. It can be said that the current interest rate is near its peak, and the high interest rate specials currently being sold are advantageous in many ways for consumers as companies are even selling them at a loss. “At this point, we recommend locking in long-term high interest rates as much as possible.”

However, once you change from DB to DC , it is impossible to return to DB again, so you must make a careful decision토토사이트. If the deposit has a long maturity but you resign before maturity, there is no loss from early termination and the deposit is repaid at the promised interest rate on a pro-rata basis until the date of resignation.

Please note that high-interest special products are not disclosed on financial company retirement pension apps. If you decide to switch to DC , you must contact the company’s retirement pension provider and ask separately. Even if you are already subscribed to DC , if you change operators, you can receive special high interest rates because you become a new subscriber. DC subscribers should check the performance of their retirement pension at this time and, if it is not performing well, consider switching providers.

“With inflation this high, will this be enough for retirement expenses?” If you are curious about retirement preparations, please visit the King Ant Research Institute! Admission is free. On Chosun.com, click here, and on portals such as Naver and Daum, copy the address ( designlab.chosun.com / giantAnt / user / html ) and enter it in the address bar.

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