Stock Market Rally Boosts Pension Funds by 61 Trillion Won

Bolstered by a strong stock market, the accumulated assets in pension savings funds have grown by over 61 trillion won in the past year. Many individuals are focusing on equity funds for their retirement preparations, driven by expectations of high returns. This trend signifies the expansion of the pension savings market, which, along with the National Pension and retirement pensions, forms the three-tiered pension system.

Notably, pension savings funds saw their assets increase by over 61 trillion won within a year and recorded annual returns of 30%, becoming a major source of FOMO (Fear Of Missing Out) for 50-something workers nearing retirement.

For individuals in their 50s with retirement on the horizon, a cautious approach to market entry timing and asset allocation is essential. The financial investment industry advises prudence in market timing and asset allocation to avoid the risk of buying at the peak. It also suggests that dividing large lump sums into equity funds or ETFs and investing a fixed amount monthly through a dollar-cost averaging strategy is crucial for diversifying risk during stock market downturns.

Mirae Asset Investment & Pension Research Center analyzed Kospi data from 1996 to 2025 (30 years) and found no cases of losses with investments held for 20 years or more through systematic savings. The analysis indicated that it is more important to make time work in one's favor rather than trying to time market peaks and troughs. The probability of loss in one-year systematic investments was 40.4%, but this significantly decreased to 2.5% when the investment period was extended to 10 years, and approached 0% for investments of 20 years or more. Long-term systematic investments were able to overcome market volatility, even during large-scale crashes.