The reality is that it is difficult to enjoy a comfortable retirement with only the national pension guaranteed by the government.
Therefore, if you have earned income, you can subscribe to a retirement pension.
Today we will learn more about retirement pension.
Retirement pension thumbnail.
severance pay calculator
What is a pension?
Types of retirement benefits
1. Types of retirement benefits
When working at a company, you need to find out whether it is a retirement pension or severance pay.
Retirement pension: Retirement benefits can be deposited at an external financial institution and received safely.
Severance pay: Severance pay is accumulated separately within the company> It is not safe and you may not receive it.
What is retirement pension?
2. What is retirement pension?
A retirement pension is a system to ensure a stable retirement for workers after retirement. It is a system in which a company entrusts an external financial institution to accumulate severance pay and returns it to the worker as a pension or lump sum upon retirement.
Retirement pension differences
3. Difference between DB type and DC type
Retirement pensions are divided into DB type and DC type.
DB type
It refers to a form of pension payment to workers in a set amount or according to a set formula. In this form, the person responsible is in the company, and mainly the employer (company or enterprise) determines and manages pension payments, taking into account the worker’s age, years of service, salary level, etc.
The advantage is that you can receive stable benefits while working for a long period of time.
DC type
Unlike the DB type, this is a form in which the worker and the employer save a certain amount and provide the worker with a pension upon retirement based on this savings amount. In this form, the worker is usually in charge, collects funds in the worker’s personal account, and receives a pension based on the funds accumulated in the account upon retirement.