Business · Markets · 3 hrs ago

Korean retirement pension transfers doubled, but moving may not raise returns

Korean retirement pension transfers doubled, but moving may not raise returns

South Korean savers transferred 6.9 trillion won in retirement pensions in the first half of 2026, more than twice the amount a year earlier.

The transfers use a service that lets people change financial providers without selling their existing investments.

Since the service began in October 2024, 15.9 trillion won has been moved, with 5.2 trillion flowing from banks to securities firms.

Many savers are seeking wider choices, such as exchange-traded funds, funds and bonds, or lower fees.

But moving to a securities firm does not guarantee higher returns: average third-quarter returns for non-guaranteed investments were higher at banks for both personal IRP and DC accounts.

Those figures are simple averages across providers, so they do not show returns on all the money held in each type of institution.

Before switching, savers can check whether their investments can be transferred, which products are available and what fees apply; long-term, diversified investing remains important.

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