One of the three employees of the Korea Employers' Association last year was in pension savings. However, the average monthly receipt amounted to only 260,000 won.
According to the Financial Supervisory Service (FSS) on Monday, the number of pension savings members at the end of 2016 was 5.565 million, an increase of 64,000 (1.2 percent) from a year earlier. Considering the annual income of 17.33 million people in the National Statistical Yearbook of Statistics in 2015, 32.1% of the employees are members.
The total number of contracts was 6.69 million. 82% of subscribers subscribed to one product and 15% subscribed to two products. The reserve amounted to 118 trillion won (contract number of 6.69 million), up 8.5 percent from the previous year (108.7 trillion won). The average reserve amount per contract was 16.95 million won, which is 11.6% of the national total, retirement and personal pension total of 1016 trillion won.
The pension receivables of pension savings subscribers increased by 186.6 billion won (20.6%) from 1.39 trillion won last year to 1.64 trillion won (534 thousand cases).
However, pension payments per contract amounted to 3,070,000 won (monthly average of 260,000 won), down by 240,000 won (7.2%) from the previous year (3,301,000 won, monthly average of 280,000 won). The contracts with annual receipts of less than 2 million won exceeded half of the total (50.2%) and contracted from 2 million won to 5 million won, accounting for 30.8% of the total, including 81.0%.
Insurance was 88.1 trillion won, accounting for 74.7% of the total reserve, trust (16.1 trillion won, 13.7%), funds (9.7 trillion won, 8.2%).
In recent 3 years, the proportion of funds has increased while the share of trusts has decreased slightly. Compared to last year, pension savings totaled 10,171.5 billion won, down by 341.5 billion won (3.1%) from 11.57 billion won last year. The amount paid per contract was 2.23 million won (excluding 0 won), which accounted for only 56% of the tax credit limit (4 million won).
The pension receipt of pension savings members last year was 1,640.1 billion won (534,000), up by 280.6 billion won (20.6%) from 1.359 trillion won last year. The pension received per contract was 3,070,000 won (monthly average 260,000 won), down by 240,000 won (7.2%) from the previous year (3,301,000 won, monthly average 280,000 won). 63.1% of contracts selected for a minimum period of 5 years, 29.2% for 5 ~ 10 years, and 92.3% of contracts for starting a pension were less than 10 years.
Last year, the number of pension savings new contracts totaled 430,000, down 4.2% from 449,000 last year. The number of new insurance contracts was 224,000, accounting for 52.1% of the total new contracts, followed by trusts (28.6%) and funds (19.3%). Fund new contracts decreased 41.1% YoY, while trust new contracts increased sharply.
The number of contracts for termination of pension savings in the same period totaled 340 thousand, up 1.6 percent from 336 thousand in the previous year. This represents 4.9% of the total number of contracts (6.96 million), which represents a 4.9% year-on-year decrease.
The amount of the cancellation was 2.88 trillion won based on the termination refund, up 12.9 percent from 2.5571 trillion won last year. In the case of the termination, the termination of arbitrary income tax (16.5%) will be charged for 96.8% of the total termination, and 3.2% is for the unavoidable reasons for pension income tax (3.3 ~ 5.5%).
The Financial Supervisory Service (FSS) has diagnosed that the pension savings function as a means of preparing for retirement is insufficient due to the low pension savings participation rate (32.1%), small pension receivables (3,070,000 won per year), short receipt period (6.6 years) .
Even if the national pension and the pension savings were concurrently enrolled, the average monthly receipt was 600,000 won, which is 58% of the minimum wage of 1,040,000 won per person.
In addition to current pension savings products such as insurance, trusts and funds, Kwon Oh-sang, the Financial Supervisor of the Financial Supervisory Commission, said, "We will support the development of various products such as investment contracts and middle- I will provide additional information such as estimated amount of pension and amount of tax upon termination to subscribers. "
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