Hana Financial Group Analyzes Financial Asset Status of Geumtoejoog
Geumtoejoog Actively Invest in Stocks and Funds in Their 30s and 40s
Average Income of 50-55-Year-Old Geumtoejoog is 5.11 Million Won per Month
[Asia Economy Reporter Kim Min-young] The average financial assets of the so-called ‘Geumtoe-jok’?those who can enjoy a comfortable retirement even after retiring?were found to be 120 million KRW. The size of financial assets increased with age.
Geumtoe-jok became prominent from their 40s, with large pension assets and active fund investments. However, those who owned real estate tended to have a lower proportion of stock investments.
Additionally, retirees aged 50 to 64 reported that sufficient retirement funds averaged 608 million KRW. However, individual opinions varied greatly. Some said 50 million KRW was enough, while others felt even 1.2 billion KRW was insufficient. Thus, the amount considered sufficient for retirement funds varied widely among individuals.
According to the report “100 Years of Happiness, How to Live as Geumtoe-jok” released on the 9th by Hana Financial Group’s 100-Year Happiness Research Center, the average financial assets of Geumtoe-jok were 120 million KRW, 35% higher than the overall survey target (90 million KRW).
By age group, the average financial assets were ▲60 million KRW for ages 30?34 ▲110 million KRW for 35?39 ▲200 million KRW for 40?44 ▲320 million KRW for 45?49 ▲390 million KRW for 50?55. The size of financial assets increased with age.
Average Financial Assets of Geumtoe-jok in Their 40s: 120 Million KRW
Geumtoe-jok become prominent starting in their 40s. Financial assets of Geumtoe-jok in their early 40s were over 100 million KRW more than the overall average. This gap is more than twice the 50 million KRW difference seen in the late 30s.
Differences also appeared in the composition of financial products. Geumtoe-jok held more than 60% of their total financial assets in funds, pensions, and trusts across all age groups. This is 7 to 15 percentage points higher than the overall average.
The proportion of stock investments peaked at ages 40?44, and fund investment size peaked at ages 45?49. Geumtoe-jok aged 40?44 allocated 15% of their financial assets to stocks through general funds, retirement pensions, and pension savings. This is 9 percentage points higher than the 6% of the same age group overall and the highest level across all age groups.
The average fund investment amount peaked at 59 million KRW at ages 45?49. Fund balances in the 50s were also 58 million KRW, indicating that active fund investment in the 40s continued into the 50s.
If real estate (housing pension) was owned, the scope of Geumtoe-jok expanded. Securing 650,000 KRW monthly from real estate starting at age 60 (based on a housing pension for a house valued at 310 million KRW at the end of 2019) reduced the financial assets held by Geumtoe-jok aged 50?55 from 390 million KRW to 220 million KRW immediately.
The Secret of Geumtoe-jok: Active Fund and Pension Savings Investment
Real estate cash flow also lowered the proportion of stock investments. Considering real estate cash flow, the stock investment ratio for ages 40?44 dropped from 15% to 8%, showing that real estate cash flow lowered the threshold for becoming Geumtoe-jok.
There were also significant changes depending on current income levels. For those close to retirement aged 50?55, the average financial assets of Geumtoe-jok were ▲150 million KRW (monthly income under 3 million KRW) ▲310 million KRW (3 to 5 million KRW) ▲510 million KRW (5 to 8 million KRW) ▲1.06 billion KRW (over 8 million KRW), showing a wide range.
The center analyzed that as income increases, consumption expenditure rises, but the national pension remains at a certain level or below, so the cash flow that must be prepared directly increases.
The average income of Geumtoe-jok aged 50?55 was calculated at 5.11 million KRW per month, 690,000 KRW more than wage workers of the same age group. The estimated monthly consumption expenditure for Geumtoe-jok in this age group was 2.98 million KRW. To maintain monthly consumption expenditure of 2.98 million KRW after retirement, excluding the expected national pension of 1.31 million KRW, those who covered 1.67 million KRW monthly were classified as Geumtoe-jok.
Center Director Jo Yong-jun emphasized, “Geumtoe-jok have large pension assets and active fund investments. Ideally, the foundation to become Geumtoe-jok should be laid by the early 40s, and the most basic and reliable way to achieve this is to protect pension assets and execute financial investments.”
Meanwhile, this survey was conducted by the Happiness Research Center in collaboration with Hana Bank’s Artificial Intelligence (AI) Big Data Center, targeting men aged 30?55 to find actual cases of Geumtoe-jok. They extracted ideal cases by income level and age group that could maintain current consumption expenditure from age 60 to expected life expectancy and examined their characteristics.
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