Business · Economy · 3 hrs ago
Korea-US diversification could raise retirement withdrawals by 42%
A Korean retirement analysis found investment choices can change how much people withdraw from their savings.
It compared portfolios of Korean stocks and bonds with one that also included US stocks and bonds.
The analysis used an initial withdrawal rate: the share of savings taken out in the first year, with later withdrawals adjusted for inflation.
Under the simulation’s 95% success-rate assumption, the rate was 3.1% for Korean assets alone and 4.4% for a portfolio split equally across Korean and US stocks and bonds.
For 100 million won in savings, that meant 4.4 million won rather than 3.1 million in the first year, and the estimated total over 30 years rose from 139.48 million to 198 million won.
These are simulation results, not guarantees, and selling investments after an early market fall can worsen losses; the analysis suggests keeping some near-term spending money in cash or other accessible assets and tailoring withdrawals to personal needs.
A report by Mirae Asset Investment and Pension Center found that diversifying retirement investments across South Korean and US stocks and bonds could raise the sustainable withdrawal rate from 3.1% to 4.4%.
In its simulation, a 95% probability of not running out of money over 30 years was used as the basis for both rates.
For a retirement fund of 100 million won, the estimated cumulative withdrawals over 30 years rose from 139.48 million won with South Korean assets alone to 198 million won with diversification.
That is an increase of 58.52 million won, or about 42%, under the report’s assumptions.
The report also warned that selling investments after a market fall soon after retirement can make it harder to recover losses.
- Who
- Mirae Asset Investment and Pension Center conducted the analysis. The report concerns South Korean retirees.
- What
- A report found that diversifying across South Korean and US stocks and bonds could raise the estimated withdrawal rate and 30-year withdrawals.
- When
- The article was published on October 17, 2026.
- Where
- The analysis compares South Korean assets with a portfolio of South Korean and US assets.
- Why
- The report examined how retirees can use their savings for living costs while managing the risk of running out of money.
This story does not have two clearly opposing sides.
Mirae Asset Investment and Pension Center analyzed asset management and withdrawal strategies for South Korean retirees in a report.
Maeil Business published an article describing the report’s findings.
- Domestic portfolio
- 50% South Korean stocks and 50% South Korean bonds
- Diversified portfolio
- 25% each in South Korean stocks, South Korean bonds, US stocks and US bonds
- Withdrawal rate
- 3.1% for domestic assets and 4.4% for the diversified portfolio at a 95% success probability
- 30-year withdrawals
- 139.48 million won with domestic assets; 198 million won with the diversified portfolio
- Difference
- 58.52 million won, or about 42%
What people are saying
The purpose of retirement asset management is not to preserve assets for as long as possible, but to use them sufficiently for retirement living while managing them sustainably for the period needed
Asset allocation and withdrawal strategies tailored to an individual's pension income, holdings and inheritance plans are needed