[시론] Expansion of old-age income by advancing the management of retirement pensions

The size of the Korean pension scheme reached 168 trillion won by the end of 2017, However, the role of workers in securing old-age income is extremely limited. Given that 88.1% of pension funds are managed as capital guarantee products, they have a low return of less than 2% per year and most receive lump sum severance payments rather than pension-type receivables. While the replacement rate of the national pension should fall to 40% on the basis of 40-year subscription, it is necessary to improve the return on the retirement pension and to introduce a guarantee system. income through the pension. The international replacement rate of 60-70% is recommended, but Korea's income replacement rate should be lower than that of Korea.

Retirement pension The advanced country of superannuation The Australian super-pension and 401 (k) in the United States are examples of how the growth of the pension market has led to the development of the management market d & # 39; badets. In 1992, Australia introduced a super-annuity, a retirement system that forced 9% of its income, which boosted badet management. The United States provided various tax benefits to the 401 (k) introduced in 1972, greatly contributing to the growth of the capital market as well as the growth of the DC pension. On the other hand, the domestic pension system operates at around 90% of the capital guarantee, such as deposits.

First, it is necessary to set up the institutional apparatus of the government: to improve this, it is necessary to organize the institutional apparatus at the governmental level, to reinforce the responsibility of the companies and the financial companies and to increase the Interest of individual workers. Recently, the introduction of the funded pension system by the Financial Services Commission is a way to increase the retirement rate. The type of fund establishes a pension fund trust company independent of the corporation, and the personnel management board decides on the overall management of the fund's management and, if necessary, leaves the management of the fund to the fund. external professional institution. The advantage of the type of funds is that it offers great flexibility in badet management and that it is easy to reflect the opinions of the workers. Above all, one can expect a relatively high professionalism and a high rate of return since the funds are managed by the management committee of the fund composed of specialists within the trustees. The introduction of the default option system can also help improve profitability by pbading capital guarantee products to dividend income products. The default option scheme allows an employee to design an investment product that is automatically badigned if the employee is subscribed to the DC model and does not issue any instructions. # 39; separate operation. However, the risk of loss due to aggressive investment can be significant and worker protection measures should be prepared together.

Secondly, it is necessary to strengthen the responsibility for the management of the retirement pensions of companies and financial corporations. The Financial Services Commission encourages the introduction of Standard Investment Policies (SPIs) focused on DB type retirement pensions and fund type. It is necessary to badyze the case of the introduction of the internal investment guidelines of major pension funds such as the national pension, and to introduce the cases of introduction and activation of major overseas countries and operability. It is also looking for ways to put in place an effective performance and compensation system to improve the accountability of pension companies. Therefore, in the case of the DB pension, companies with reserve fund management rights are likely to operate in accordance with the detailed investment policy book.

Finally, it is necessary to expand the interest of individual subscribers in the management of pensions. 95% of the DB pension funds in charge of management are operated as principal guarantee products, while the DC type pension and the individual IORPs directly managed by the subscribers also represent 79%, 66%% In order to increase long-term returns, investors should invest more in dividend-paying products.

At the age of 100, it is necessary to advertise with pension badets such as retirement pensions for a stable retirement and to earn old-age income by subscribing to products that meet the retiree's investment propensity. In particular, according to the structure of low interest rates, it is necessary to broaden the investment products that seek profits rather than stable retirement plans, and various retirement products should be developed in accordance with the deregulation of pension management.

Kwon Moon-kang, responsible for the retirement business of Korea Investment & Securities