"Pre-Designated Retirement Pension Fund Product Returns Highest in Insurance Sector"

The 1-year operating return of pre-designated retirement pension products was found to be highest in the insurance sector.

According to the report "Status of Selection and Performance Evaluation of Pre-Designated Operation Products" by the Korea Insurance Research Institute on the 19th, as of December last year, the 1-year operating return of pre-designated retirement pension reserves was 10.13%, with the insurance sector recording the highest at 11.91%. Following that, the securities sector had 10.23%, and banks had 9.17%.

The pre-designated operation system is a retirement pension asset management system where, if the maturity of the subscribed financial product arrives and the subscriber does not give separate operation instructions, the assets are invested in a pre-designated financial product after a 6-week waiting period. Introduced in July 2022 to improve retirement pension returns, it underwent a one-year pilot operation and has been fully implemented since July last year.

By risk level, ultra-low risk was 4.56%, low risk 7.69%, medium risk 10.91%, and high risk 14.22%. This means that returns increase as the risk level rises.

The insurance sector's returns by risk level were 4.83% for ultra-low risk, no investment for low risk, 13.74% for medium risk, and 14.70% for high risk.

The 1-year fee rates by sector were 0.69% for insurance, 0.61% for securities, and 0.43% for banks.

The proportion of designated reserves by sector at the end of last year was 84.3% for banks, 7.6% for the Korea Workers' Compensation and Welfare Service, 4.7% for insurance, and 3.3% for securities. By risk level, the proportion of designated reserve management was highest for ultra-low risk products at 89.9%, followed by low risk at 5.4%, medium risk at 3.2%, and high risk at 1.4%.