"The more pensions, the better"... Proposal for a Korean-style reform through Austria's 'Active Pension' model

As the aging rate in South Korea accelerates, an analysis has emerged stating that institutional alternatives beyond simple cash support are needed regarding methods for guaranteeing old-age income. In "Pension Doctor Live," which conducts real-time consultations every Monday, the importance of preparing for old age was emphasized by covering various pension systems, from the National Pension to retirement pensions, individual pensions, and housing pensions.

"The more pensions, the better; an asset character different from stocks or real estate"

Pension expert Lee Yong-ju explained the characteristics of pension assets by differentiating them from stocks or real estate. In the video, Lee Yong-ju mentioned that once stocks exceed a certain level, they can turn into speculation due to volatility, and excessive holding of real estate can also cause the side effect of increasing the number of non-homeowners regardless of the housing supply rate. On the other hand, he defined pensions as assets with a "the more, the better" nature that contributes to individual happiness, social stability, and national management the more they are prepared.

Austria's 'Active Pension' case and the direction of South Korea's basic pension reform

Lee Yong-ju connected the 'Active Pension' system currently being implemented in Austria to the discussions regarding the reform of South Korea's basic pension. While South Korea's current basic pension is a method of directly paying cash to elderly people who meet certain eligibility criteria, Austria's Active Pension is a method of providing income tax reductions to those who continue economic activities even in their old age.

According to the explanation in the video, the Active Pension has the effect of increasing actual disposable income by reducing the income tax of working people. Lee Yong-ju pointed out that the method of directly distributing cash may only have short-term effects, and suggested that when reforming the basic pension, rather than unconditional cuts, supporting disposable income by providing tax benefits to those who work in their old age could be a more rational solution.

Retirement pension IRP management and how to utilize tax-free pension insurance

Consultations regarding specific questions from viewers also followed. Regarding a case where retirement benefits were received in an IRP (Individual Retirement Pension) account and have been managed only through deposits for three years, Lee Yong-ju advised that the answer varies depending on the individual's situation. He explained that if old-age assets are sufficient, stable management is necessary, but if the situation requires asset growth, various portfolios such as stock funds, ETFs, bond funds, and individual investment government bonds can be considered.

Furthermore, specific information was provided regarding the limits of individual pension insurance that receives tax-free benefits. In the video, it was mentioned that apart from the pension savings/IRA that receives tax credits within the annual 18 million won contribution limit, it is possible to subscribe to tax-free pension insurance with a single premium limit of 100 million won and a monthly contribution limit of 1.5 million won respectively. Lee Yong-ju emphasized that because the conditions for tax benefits for pensions are complex, one must consult with an expert to design a plan suited to their own situation.