Korea Investment Management Publishes "ACE Pension Investment Guidebook"

From Maximum Tax Deduction Limits to Strategy-Based Portfolio Recommendations
"Efficient Utilization of a Pension Account Is Fulfilled Only When Fully Invested"

Korea Investment Management announced on October 1 that it has published a revised edition of the "ACE Pension Investment Guidebook."

After releasing the first edition of the ACE Pension Investment Guidebook in 2024, Korea Investment Management has published updated editions annually. Last year, the company highlighted age-specific portfolios on the cover, reflecting the shift in retirement pension investors’ preferences from saving to investing. This year’s edition includes practical pension investment methods to maximize tax deductions during year-end tax settlement, as well as portfolio recommendations according to different investment strategies.

The section on practical pension investment details the maximum tax deduction limits for each income bracket, and includes a checklist of items that pension investors should confirm. Through this checklist, which covers everything from making contributions to the time investments begin, the guide emphasizes that "efficient utilization of a pension account is only fulfilled when idle funds within the pension account are actually invested."

The guide recognizes that different investors have varying time horizons and levels of volatility tolerance, and accordingly divides the portfolios into the following categories: ▲Monthly Dividend ▲Core+Satellite ▲Growth. The All-Weather Portfolio is intended for those seeking stable investments or for investors approaching the payout phase, while the Monthly Dividend Portfolio is designed for those who wish to receive consistent income by collecting monthly distributions from Exchange-Traded Funds (ETFs).

The Core+Satellite Portfolio and the Growth Portfolio are suggested for investors who have more time until pension payout and are therefore seeking capital gains. The Core+Satellite Portfolio aims to match market returns with its core assets while the satellite allocation seeks additional growth. The Growth investment strategy, on the other hand, invests in assets with high long-term growth potential. Thus, among the four portfolios, it carries the highest expected return and volatility.

Ahn Myunghun, Head of ETF Consulting at Korea Investment Management, stated, "In the fourth quarter, as year-end approaches, pension account contributions usually increase for tax deduction purposes," adding, "We have prepared this guidebook to ensure that these contributions are not left as idle funds but are actually invested."

This content was produced with the assistance of AI translation services.