Government Bonds to Be Available for Retirement Pension Accounts Starting September, Reducing Tax Burden

For those looking to prepare for retirement while also saving on taxes, there is some noteworthy news.

Starting this September, it will be possible to purchase government bonds issued by the state using retirement pension funds.

Until now, investing in government bonds required opening a separate, dedicated account.

Moving forward, investors will be able to invest directly within their retirement pension accounts, which can significantly reduce their tax burden.

This is because retirement pension accounts do not tax investment gains immediately; instead, a lower tax rate is applied when the funds are withdrawn as a pension later on.

For example, if you receive 15 million won from a government bond investment in 20 years, the tax would be approximately 1.43 million won in a regular account, but it would decrease to about 820,000 won if invested through a retirement pension account.

When you also consider the year-end tax credit available for retirement pension contributions, the actual tax paid effectively becomes close to zero.

If you are preparing for your retirement through a pension plan, it would be worth looking into government bond investments as well.
※ Please note: This article was translated by AI and may contain errors.