Fixed 4.4% rate applies for 10 years

5%, 10% loyalty bonuses for maintaining policy 5, 10 years

Enrollment open from age 20 to 80, starting at 2 million won

No interest income tax on insurance gains

Samsung Life said Thursday it has launched a digital pension insurance product called "Samsung Grow-and-Receive Pension Insurance." The product allows customers to prepare for retirement by paying a lump sum upfront. Under the structure, policyholders pay the premium in full at enrollment, then let it grow for at least 10 years before receiving it as a pension.

As of September, enrollees receive a fixed annual compound interest rate of 4.4 percent (pretax, after deducting operating costs) for the first 10 years. After that period, the accumulated funds will be managed under a floating rate tied to market conditions. During the initial 10-year period, the fixed rate applies regardless of market interest rate fluctuations. After 10 years, a floating rate reflecting the company's asset management returns and market interest rates will apply, and this rate can change monthly.

The product comes in two types: a basic version and a pension-enhanced version. Policyholders who choose the pension-enhanced version and maintain it long-term receive a loyalty bonus equal to 5 percent of the bonus base amount at both the five-year and 10-year marks, for a combined bonus of 10 percent. If a policyholder cancels the contract before a scheduled loyalty bonus date and before the pension payments begin, any accumulated loyalty bonus up to that point will not be paid out.

Based on September rates, if a 55-year-old man enrolls in the pension-enhanced version with a one-time premium of 100 million won ($74,600), his accumulated balance after 10 years would reach roughly 150 million won. If the policy meets tax-exemption requirements under relevant tax law, no interest income tax is levied on the insurance gains.

Enrollment is open to those between the ages of 20 and 80, with a minimum premium of 2 million won.

After enrollment, policyholders can borrow up to 95 percent of the surrender value through a policy loan, or make partial early withdrawals from their accumulated funds, without additional screening and without canceling the contract. However, the remaining balance after a withdrawal must stay at or above 30 percent of the base premium. Any amount withdrawn early reduces the accumulated balance or loyalty bonus, which can lower the eventual pension payout.

The Grow-and-Receive Pension Insurance can be purchased through Samsung Life Direct and Monimo, the integrated app for Samsung's financial services. It is also available through digital platforms including Kakao Bank.

"Because a fixed rate applies for 10 years, this product suits customers who want to set aside a lump sum for retirement without worrying about interest rate fluctuations," a Samsung Life official said. "We will continue to expand products and services that make it easy and convenient to enroll in a digital environment."

Pension insurance is a type of private pension product in which policyholders pay premiums while they have income and receive payouts as a pension after retirement. As life expectancy rises and the population ages, such products are becoming more important as a way to supplement retirement funds that public pensions alone cannot cover.


kimstar@heraldcorp.com