Corporate retirement pension funds grew nearly 14 percent from a year earlier in 2023 and their return on investment also rose, data showed Thursday. The total amount of corporate retirement pension funds under management came to 382.4 trillion won (US$282.6 billion) as of end-2023, up 46.5 trillion won, or 13.8 percent, from a year before, according to the data from the Financial Supervisory Service. The funds recorded an average return of 5.26 percent on their investments last year, up 5.24 percentage points from 0.02 percent in 2022. The funds' average return on investment for the past five years came to 2.35 percent as of end-2023, up 0.84 percentage point from a year earlier, with the 10-year average also climbing to 2.07 percent from 1.93 percent over the cited period. The corporate pension program was introduced in 2005, allowing employees to receive their pension in one lump-sum payment or monthly installments after their retirement. In 2023, out of some 529,000 people who received or began recei ving payments from their corporate pension program, 10.4 percent chose monthly payments over a one-time payment, breaching the 10 percent mark for the first time, according to the financial regulator. The rate has been on a steady rise from 4.3 percent in 2021 to 7.1 percent the following year. The corporate pension funds are separate from the national pension funds, which amounted to 1,035 trillion won as of end-2023. As of end-2021, some 425,000 businesses had adopted the retirement pension program, offering a private pension plan to about 6.8 million workers in addition to their national pension plan. Source: Yonhap News Agency
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