Senior wealth manager Choi Jae-san from Shinhan Bank recommended a diversified asset management strategy that includes both pensions and financial investments for a stable retirement. Speaking at the ‘2025 Hankyung Money Roadshow’ held in Seoul, he emphasized the importance of reviewing cash flow post-retirement. He advised making good use of the various pension options like national pension, retirement pension, personal pension, and housing pension, suggesting that knowing the expected pension amount is the first step to securing a stable post-retirement life.
Choi highlighted the tax-saving advantages of receiving retirement pay as a pension rather than a lump sum, which reduces the retirement income tax by 30% for up to 10 years and by 40% from the 11th year onwards. Moreover, retirees can choose between various types of retirement pensions, such as defined benefit (DB), defined contribution (DC), and individual retirement pension (IRP), depending on their preferences.
Additionally, Choi suggested the reverse mortgage scheme, or housing pension, which allows property owners to receive regular income in return for their house. The monthly payout increases with higher house value and older age. This could be beneficial, especially for regions anticipating little increase in property prices.
He also recommended considering investment products for stable retirement planning, singling out bonds as a promising prospect. As interest rate cuts are anticipated, investing in bonds might yield higher returns, with the added advantage of potential capital gains if sold before maturity. For domestic bonds, he suggested the 3-year Korean treasury bond, and for international, the 10-year U.S. treasury bond.
Finally, Choi also identified dollar insurance as an attractive option due to its fixed interest rate over 5 to 10 years and potential tax-free interest income. He recommended watching the U.S. and Indian markets, citing favorable factors like U.S. protectionist policies and AI investment, as well as India’s potential benefits from a restructured global supply chain amid tech conflicts.