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IRP · Pension Savings · Long-term Compound Interest · Annual SchedulePension Calculator

Enter the monthly payment, annual rate of return, and payment period to instantly calculate the estimated pension assets at retirement, total return, and annual accumulation schedule.

🎯 Retirement Asset Calculation 📈 Long-term compounding 📋 Schedule by Year 🔄 Payment Scenario
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🎯 Enter Pension Information
Monthly payment500,000 won
원
10,0002.5 million5 million7.5 million10 million
Annual rate of return5.0%
%
0.1%5%10%15%20%
Payment period30 years
년
1 year12 years25 years37 years50 years
💡 Pension Savings & IRP Product Comparison
Compare pension products that suit your needs all at once.
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💡 Monthly payment compound interest standardIt is calculated as follows. The actual rate of return may vary depending on the product type, fees, and market conditions.
📊 Calculation result
🎯

After entering pension information
Calculate Please press the button.

Expected pension assets
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Total payment—
Total revenue—
Profit share—
Monthly payment—
Annual average compound rate—
Principal vs. Profit
principal paid —revenue —
💡 Asset Comparison by Contribution Amount
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Annual leaveAccumulated paymentsCumulative profitExpected assetsProfit share
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What is a pension calculator?

A pension calculator is a tool that checks how much asset you can build by the time of retirement if you contribute a fixed amount every month. For products that accumulate through long-term compounding, such as pension savings, IRPs, and private pensions, the difference between the starting point and the rate of return has a significant impact on the final asset value.

Pension asset calculation formula

Final Asset = Monthly Payment × ((1 + Monthly Interest Rate)^Payment Months − 1) ÷ Monthly Interest Rate × (1 + Monthly Interest Rate)
Monthly Interest Rate = Annual Yield ÷ 12

Pension Savings vs. IRP, How Are They Different?

Pension savings (funds, insurance, and trusts) are eligible for tax deductions of up to 6 million won per year. IRPs are eligible for tax deductions of up to 9 million won per year when combined with pension savings, and both products offer the benefit of a low tax rate of 3.3% to 5.5% when receiving a pension after age 55.

💡 Tax credit tax-saving effect: When paying 9 million won per year, you receive an annual tax refund of 1.485 million won based on the 16.5% tax credit. If you pay for 20 years, the tax refund alone results in a tax saving effect of approximately 29.7 million won.

Why Starting Early Is Advantageous

If you pay 300,000 won per month for 30 years at age 30 with an annual rate of 5%, you will accumulate approximately 250 million won. If you pay under the same conditions for 20 years at age 40, you will accumulate approximately 120 million won. A difference of just 10 years results in more than double your assets. Compare this yourself using this calculator.

Precautions when receiving a pension

  • Low tax rate of 3.3–5.5% applies when receiving as a pension after age 55
  • Subject to combined taxation for comprehensive income tax if annual receipts exceed 12 million won
  • Upon early termination, other income tax of 16.51 TP3T is imposed on the tax credited amount + investment earnings.
  • Actual returns fluctuate depending on the assets included (weight of bonds and stocks) and market conditions.

Frequently Asked Questions

When is the best time to start receiving a pension?
The sooner you start, the better. The effect of compound interest becomes dramatically greater the longer the time passes. If you are a young professional, it is advantageous to start an IRP or pension savings plan early, even with just 100,000 to 200,000 won per month, and you can simply increase your contributions later as your income grows.
Which should I sign up for first, a pension savings plan or an IRP?
Generally, it is more convenient to manage by signing up for a pension savings plan first and filling the remaining limit with an IRP. While partial early withdrawals are allowed for pension savings plans, early withdrawals from IRPs are restricted except for statutory reasons. If liquidity is important to you, increase the proportion of your pension savings.
Why do the calculator results differ from the actual returns on pension products?
This calculator assumes that the entered rate of return is compounded consistently every month. The actual product may differ as it reflects management fees (0.1–1.51 TP3T per annum), market volatility, changes in asset weighting, tax deductions, and taxation upon pension receipt.
How much can I receive each month after retirement?
You can estimate the amount by dividing the total accumulated assets by the payout period (in years). For example, if you receive 200 million won over 20 years, the monthly payment is approximately 830,000 won. This varies depending on the actual payout method (fixed-term or lifetime) and the investment strategy.
Are there any disadvantages to canceling the pension early?
Other income tax of 16.51 TP3T is levied in a lump sum on contributions and investment returns for which tax credits were received. If you received a tax credit benefit of 16.51 TP3T, you are effectively paying back the tax you received as a refund, which may result in a loss of principal.

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