[A Sip of Books] How to Become a Retired Middle Class: 'Pension Wealth Habits'

Some sentences encapsulate the entire content of the book itself, while others instantly reach the reader's heart and create a connection with the book. Here, we introduce such meaningful sentences excerpted from the book. - Editor's note

There are two types of pensions: financial pensions and non-financial pensions. Financial pensions refer to money, while non-financial pensions refer to relationships and health. The term "Pension Rich," which is also the title of this book, describes a person who enjoys their hobbies with an inexhaustible cash flow, close human relationships, and strong muscles, living vibrantly without being constrained by money. Such people are called the retired middle class. The book guides you step-by-step on what to open, what to organize, and what to change among National Pension, Retirement Pension, Pension Savings, Pension Insurance, and more.

If Mr. K receives a retirement pension over 20 years, he will receive 10 million won annually for 20 years. During this period, a 7% tax rate applies up to the 10th year, and from the 11th year onward, a 6% tax rate (40% reduction) applies, allowing for greater tax savings. In short, pensions yield the most benefits when received over a long period. - p. 87

Inheritance planning, including gifts, saves taxes the earlier it is done, but it is also essential to prevent family disputes after one's death. As you know, the most crucial part of inheritance planning is the will. There are five types of wills defined by civil law: handwritten will, recorded will, notarized will, secret will, and oral will (a kind of verbal will). - p. 96

One senior once said, "Retirement was good for the first three months, but after that, spending time became a chore." On the other hand, another senior said, "After retirement, each day passes so quickly that I am busier than when I was working." Analyzing the difference between these two seniors, one had no special hobbies, while the other enjoyed various hobbies. - p. 162

Relationships with people you can emotionally rely on are not built overnight but must be gradually accumulated like a pension to grow substantial. Emotional pensions are even more important because when health deteriorates or chronic illnesses require care, the mind weakens faster than the body. - p. 166

Pension Rich Habits | Kang Seongmin | Good Habit Research Institute | 228 pages | 16,500 KRW