'What Are the Best Tips for Pension Management?'… NH Investment & Securities Publishes THE100 Report No. 86

In an era of high interest rates and high inflation, it is advantageous to adjust pension assets to focus on value stocks in the portfolio. Along with this, advice was given to consider reducing debt and utilizing reverse mortgages.

NH Investment & Securities' 100-Year Life Research Institute announced on the 13th that it published THE100 Report No. 86 under the theme "Asset Management Principles in the Era of High Interest Rates and High Inflation." THE100 Report is a monthly research publication by NH Investment & Securities' 100-Year Life Research Institute, studying various topics such as lifetime asset management and trends for a happy 100-year life.

In the first report of this issue, "No Abnormalities on the Pension Front," it was suggested that despite ongoing difficulties in asset management amid recent high interest rates and inflation, there are four tips for managing pension assets, which are an important source of retirement living expenses.

First, it recommended adjusting the pension asset portfolio. Generally, during economic recessions, value stock funds are more advantageous than growth stocks.

Second, if directly composing a portfolio is difficult, using a default option is also a method. There is a way to select products suitable for one’s investment style from portfolios divided into four risk levels.

Third, reducing debt is also part of asset management. It advised lowering the interest burden that becomes difficult to bear after retirement when there is no earned income. Methods include reducing debt or refinancing with loans from primary financial institutions.

Fourth, if retirement assets are still insufficient, reverse mortgages can be utilized. Given the characteristic of Korean households having a high proportion of real assets, reverse mortgages, which provide lifelong pensions secured by housing, are considered ideal.

The second report, "The Time of FIRE Followers Goes Backwards," examined asset management principles that FIRE followers should not forget in pursuit of financial freedom amid economic changes and recessions.

Meanwhile, THE100 Report can be accessed on the NH Investment & Securities 100-Year Life Research Institute website.