NEWS: Total balance of individual retirement pensions (IRP) at Korea's five major banks has exceeded 36 billion USD

📢 NEWS 📢

The total balance of individual retirement pensions (IRP) at Korea's five major banks has exceeded 36 billion USD for the first time, marking an increase of 7.9 billion USD year-on-year. This 27.1% rise reflects Korea's ageing population and enhanced tax benefits for IRP holders, offering tax deductions of up to 16.5% on annual deposits.

IRP holders are eligible for year-end tax deductions of up to 16.5% of the deposits they have paid throughout the year. However, scepticism about the effectiveness of the IRP programs continues to rise due to relatively poor returns.

Korean banks are under pressure to innovate and improve IRP returns to ensure effectiveness and attract consumer engagement. Efforts to diversify product options and encourage proactive account management are underway to address these challenges.

Read more here 👉 https://lnkd.in/gwxP7U9T

Did you know that as part of AKBC's membership, if you are an Advance level member or above you can access our Financial Services Industry Group? If you're not yet a member and keen to join, please contact us at info@akbc.com.au.

If this subject matter is of interest, come along to the Australia-Korea Superannuation Pension Symposium in Sydney on 28 November 2024. John Walker AM, the Chair of AKBC Financial Services Industry Group and Liz Griffin, CEO of AKBC will speak at the event. This event is a great opportunity to engage with the National Pension Service (NPS) and Korea Financial Investment Association (KOFIA) delegation from Korea. 🇦🇺🇰🇷