Office worker in his 50s, “9 years until retirement… My wife says I should pay off the loan first”

Mr. A, an office worker in his early 50s, has about 9 years left until retirement. Although he is a single-income earner, fortunately, his children have recently succeeded in getting a job, so he seems to be able to divert the money that was going to his children into retirement funds. It is expected that there will be a surplus of 800,000 to 1 million won per month. The problem is that the couple has different opinions on how to use these funds. Her wife, Mr. B, tells her to pay off her mortgage first. The reason is that her very existence is a burden. Mr. A has a lot of loan repayment period left, but the interest rate is not high at around 3%, and he believes that he can invest his severance pay if he finds it difficult to repay before retirement. Both sides are not backing down their claims. What is clear is that it is difficult to maintain a stable retirement with the pension prepared so far. He is also thinking of signing up for an individual retirement pension ( IRP ) and investing in stocks.

Mr. A (51)’s monthly income (after tax) is 4.9 million won. Separately, 15 million won of annual other income comes in. The basic cost is about 4.25 million won. These include pension (250,000 won), subscription (100,000 won), mortgage repayment (900,000 won), and living expenses (3 million won). In addition, Mr. A’s pocket money and other expenses are required. Mr. A transfers 4.25 million won per month and uses the remaining amount for his own expenses.

His assets include a house worth 700 million won. Financial assets total 129.6 million won. Deposit assets amount to 32.6 million won, including term deposits (15 million won), deposit/withdrawal accounts (9 million won), and subscriptions (8.6 million won). Pension assets total 97 million won, including pension savings insurance (51 million won, under consideration for fund conversion) and personal pension insurance (48 million won, fully paid in wife’s name). The balance of the home mortgage loan is 190 million won. He is expected to receive 200 million won in severance pay and 1.6 million won per month in national pension.

According to the Financial Supervisory Service, people in their 50s have about 10 years left until retirement, but they cannot help but feel anxious because it is a time when they need to save money to survive for the next 30 to 40 years. That’s why I’m starting to take interest in investments that I’ve neglected so far.

However, rather than jumping in hastily, it is better to check your current retirement preparation assets. That’s why it’s important to consider how to use and configure it in the future. Specifically, it is necessary to look at the starting point of public pension, expected amount to be received, personal pension preparation, and debt status.

The first step to a stable retirement life is to repay debt as much as possible during the period of income-generating activities. As income decreases after retirement, it is not easy to quickly control spending. An official from the Financial Supervisory Service pointed out, “Rather than vaguely investing, it is time to review the asset status and income and expenditure situation to increase available funds during the income period and set the direction for retirement preparation.”

In particular, Mr. A is currently paying major expenses other than living expenses, such as holidays, congratulations and condolences, vacation expenses, car insurance premiums, taxes, etc., whenever necessary, but the monthly variation is large and it is not managed properly. Couples should also practice reducing spending together. We also need to avoid the habit of spending money on our own.

A Financial Supervisory Service official pointed out that couples should first figure out their annual expenses together and set a budget. Expenditures can be broadly divided into necessary expenditures and optional expenditures. The former is money that is essential, such as fixed expenses, variable expenses, and couple’s allowance, and the latter is money that is necessary on an annual basis but is not paid out consistently every month. The rest is savings that will be used as funds for retirement preparation.

At this time, you must divide your bank account to manage your money efficiently. It can be divided메이저사이트 into salary, annual irregular expenses, living expenses, debt, couple’s allowance, etc.

Next, you need to set specific financial goals for retirement. The recommendation is to first repay debt before retirement and then receive pension. The monthly debt cost can be adjusted upwards to 1 million won, and additional principal can be repaid with annual other income.

There is an income gap of 5 years between retirement at age 60 and receiving pension at age 65, and during this time, you also need funds to sustain your life. It is a good idea to save about 3 million won per month by utilizing retirement pension, pension savings, IRP , and pension insurance.

You also need some extra money. This is because unexpected expenses, such as medical expenses, may arise. Accordingly, Mr. A is considering re-employment after retirement. If you continue to earn 2 million won per month for 3 to 5 years, you can prepare about 50 million won to 100 million won. If the wife also starts an income-generating activity that earns 500,000 to 1 million won per month, she can increase her surplus funds.

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