Have you heard of retirement pension? Most people who work will sign up for a retirement pension from their company at some point. But I didn’t know much at first and just signed. Did you know that there are different types of retirement pension? If you don’t know, you might want to know what type of retirement pension I am enrolled in and what types of retirement pension there are. So today, we will learn about the types of retirement pension and how to check your retirement pension.
Go to My Retirement Pension Inquiry >
Check Korea Workers’ Compensation and Welfare Service retirement pension>
Learn about retirement pension default options >
index
What is retirement pension?
Types of retirement pension
Defined benefit type (DB type) retirement pension
Defined contribution (DC type) retirement pension
Individual retirement pension (IRP type)
What type of retirement pension is best for me?
Comparison of defined contribution type (DB type) and defined contribution type (DC type)
How to check retirement pension
Financial Supervisory Service Integrated Pension Portal Retirement Pension Inquiry Method
How to check Korea Workers’ Compensation and Welfare Service retirement pension
Good information to look at along with retirement pension types and inquiry methods.
Retirement pension types and inquiry methods
Retirement pension types and inquiry methods
What is retirement pension?
The retirement pension system refers to money in which an employer entrusts retirement benefits to a financial institution every year, accumulates the accumulated funds outside the company, and manages them according to the instructions of the company or employee, and pays the employee in the form of a lump sum or pension upon retirement. .
Because severance pay is accumulated outside the company rather than inside, the employee’s severance pay is safely managed even if the company’s financial situation is poor.
However, unlike the statutory retirement pension system, the retirement pension system is voluntarily introduced through labor-management agreement and is not mandatory. Unlike severance pay, it is not mandatory. Therefore, it is also possible to maintain the existing retirement payment system.
Retirement pension types and inquiry methods
Retirement pension types and inquiry methods
Retirement pension types and inquiry methods
Retirement pension types and inquiry methods
Types of retirement pension
There are probably many people who signed up for a retirement pension at their company, but even if they heard the explanation at the time, there are probably many people who signed up without knowing much about it. First of all, retirement pensions are classified into three types: DB type, DC type, and IRP type. I can’t say which is better because each has its pros and cons. Now, let’s take a closer look at each type.
Learn about the rates of return by retirement pension company >
Defined benefit type (DB type) retirement pension
– Defined benefit (DB type) retirement pension is literally a pension in which the amount of retirement benefit a worker receives upon retirement is set. The company accumulates reserves at a financial company every year and manages them directly.
In the case of workers, it is safe because they receive guaranteed retirement benefits from the company regardless of operating profits or losses, but the risk burden can be high because the company operates directly. Instead, when profits are made, the company keeps the excess profits.
※ Both accumulation and investment are done by the company.
※ 30 days of average wage at retirement x number of years of service = paid to worker
Defined benefit retirement pension (DB)
● A retirement pension system in which the retirement benefits that workers will receive upon retirement are determined in advance.
● Employers accumulate retirement pension contributions and manage them at their own responsibility.
Calculate my severance pay >
Retirement pension types and inquiry methods
Retirement pension types and inquiry methods
Defined contribution (DC type) retirement pension
– The defined contribution (DC type) retirement pension is a method in which workers directly manage their savings, as opposed to the defined benefit type (DB type). Employers regularly deposit at least 1/12th of the total wages each year into workers’ retirement pension accounts, and workers can directly invest the savings in financial products.
However, the profits and losses that occur at this time are the responsibility of the worker who directly operates the system, and the amount of retirement benefits may vary depending on the profits and losses.
※ Savings are made by the company and investments are made by the employees.
Defined contribution (DC type) retirement pension
● A retirement pension system in which the contribution to be paid by the employer is determined in advance at 1/12 of the total annual wage of the employee each year.
● Workers directly manage their own retirement pension reserves and receive the savings and management income as retirement benefits.
Retirement pension types and inquiry methods
Retirement pension types and inquiry methods
Individual retirement pension (IRP type)
– Individual Retirement PensionIndividual Retirement Pension (IRP type) is an individual retirement pension. Even if you are subscribed to a retirement pension within your company, you can additionally subscribe as an individual, and you can also participate in personal retirement pension accounts operated by various financial institutions.
Workers can continue to use the retirement benefits received by operating the retirement benefit system upon retirement and the additional amount accumulated through personal expenses even after retirement.
At this time, an individual can pay additional expenses of up to 18 million won per year, and receive a tax deduction of up to 9 million won.
Individual retirement pension (IRP type)
● A retirement pension integration system that allows workers to collect retirement benefits received when changing jobs or retiring into one account and use them as retirement funds.
We looked into the types of retirement pensions. The government will introduce the retirement pension default option (pre-designated operation system) on July 12, 2022, and after a one-year grace period, from July 2023. Those who subscribe to the existing defined contribution plan (DC type) or individual retirement pension (IRP type) must apply for the retirement pension default option, so we recommend that you learn more about the retirement pension default option. Retirement pension default options can be found below.
Learn about retirement pension default options >
Retirement pension types and inquiry methods
Retirement pension types and inquiry methods
Retirement pension types and inquiry methods
Retirement pension types and inquiry methods
What type of retirement pension is best for me?
So which type of retirement pension is best for me? Perhaps, for people who have been working at a stable job for a long time, the defined benefit type (DB type) is more advantageous to the defined contribution type (DC type) for those who prioritize returns over a stable guaranteed amount. Now, let’s compare the DB type and DC type.
Comparison of defined contribution type (DB type) and defined contribution type (DC type)
Classification Defined benefit type (DB type) Defined contribution type (DC type)
Concept ● Labor and management agree in advance on the level and content of salary to be paid upon retirement
● The company decides how to operate its reserves
● Payment of pre-agreed retirement benefits when workers retire ● Labor and management determine in advance the level of contributions to be paid by the company
● Workers decide how to manage their savings
● When a worker retires, retirement benefits are paid according to management results.
Enterprise
Burden ● The corporate burden changes depending on the results of reserve management ● Each year, the corporate burden is fixed as a certain percentage of the worker’s wages (more than 1/12 of the subscriber’s total annual wage)
retirement
Benefits ● Determined according to the working period and wage level at retirement (more than an amount equivalent to 30 days of average wage for one year of continuous employment) ● Retirement benefit level changes depending on asset management performance
Employee
addition
Payment ● Impossible ● Possible
suitable company,
Workers ● Companies with no risk of bankruptcy and stable employment, including guaranteed retirement age ● Companies that have introduced an annual salary system
● Workers who frequently move to work
If the retirement pension system is introduced by the company you are working for, you will be automatically enrolled through the company. Depending on the company’s adoption type, it is generally possible to choose between a defined benefit type (DB type) and a defined contribution type (DC type) to operate. Please inquire with the company you are working for regarding the systems you can join and choose carefully.
Retirement pension types and inquiry methods
Retirement pension types and inquiry methods
Retirement pension types and inquiry methods
Retirement pension types and inquiry methods
How to check retirement pension
Now, let’s take a closer look at what type of retirement pension I am enrolled in and how to check it. First of all, if you are a small business with less than 30 employees, you may have signed up for the Korea Workers’ Compensation and Welfare Service’s retirement pension. So, let’s take a look at two ways: how to check the retirement pension of the Korea Workers’ Compensation and Welfare Service and how to check it on the official website of the Financial Supervisory Service’s Integrated Pension Portal.
Financial Supervisory Service Integrated Pension Portal Retirement Pension Inquiry Method
1. Access the Financial Supervisory Service Integrated Pension Portal website.
Go to the Financial Supervisory Service Integrated Pension Portal >
2. Left [My pension inquiry. Select [Financial Planning] or [View My Pension]
Retirement pension types and inquiry methods
Retirement pension types and inquiry methods
3. If you are here for the first time, please register as a member, and if you are an existing member, please log in.
Retirement pension types and inquiry methods
Retirement pension types and inquiry methods
4. When you first check your pension information, you can check the results after about 3 business days. From then on, the pension information is updated at the end of each month and can be viewed immediately.
Retirement pension types and inquiry methods
Retirement pension types and inquiry methods
Retirement pension types and inquiry methods
Retirement pension types and inquiry methods
Retirement pension types and inquiry methods
Retirement pension types and inquiry methods
How to check Korea Workers’ Compensation and Welfare Service retirement pension
1. Access the Korea Workers’ Compensation and Welfare Service’s retirement pension website.
Go to the Korea Workers’ Compensation and Welfare Service website>
2. Proceed with logging in.
– If you are a first-time visitor, you must register as a member and log in with your ID, and register a joint certificate at the authentication center to be able to log in with the joint certificate you registered next time.
Retirement pension types and inquiry methods
Retirement pension types and inquiry methods
3. Select [Retirement Pension Status] to view your retirement pension.