SEOUL, April 11 (Korea Bizwire) — South Korea’s personal pension savings grew 5 percent in 2021 as younger people have keen interest in making preparations for post-retirement life, data showed Monday.
The country’s personal pension savings reserves came to 160.1 trillion won (US$130.2 billion) last year, up from the previous year’s 152.5 trillion won, according to the data from the Financial Supervisory Service (FSS).
The rise came as younger people increasingly opened accounts for pension products last year.
The number of subscriptions to pension products among those in their 20s jumped 70 percent on-year in 2021. The number for those in their 30s also rose 21.9 percent over the same period.
The figures were much higher than a 16.7 percent on-year rise tallied for all age groups.
The return on pension savings stood at 4.36 percent last year, up 0.18 percentage point from a year earlier, the data showed.
As pension savings reserves are on the rise, the FSS said that it is necessary to expand government support, including tax deduction for such products intended to help many people with post-retirement life.