The Society of Convergence Knowledge Transactions ISSN:2287-8920(Print) 융복합지식학회논문지

The prediction results indicated that investment returns for both DC and IRP schemes are expected to show a consistent pattern: a decline in the first and third quarters and a rise in the second and fourth quarters, remaining within a certain predictable range. Furthermore, when analyzing the overall IRP investment returns, it was observed that the amplitude of fluctuations (both upward and downward) was smaller compared to the returns from non-guaranteed principal products alone. An examination of the asset allocation ratios for DC and IRP revealed that IRP, which provides an annual tax benefit of 3 million KRW more than DC, exhibited a higher allocation ratio. However, despite this higher participation, IRP's actual returns were found to be similar to or even lower than those of DC schemes. This suggests that simply increasing investment participation does not necessarily translate into higher returns, a phenomenon likely attributable to behavioral economic biases such as improper investment decisions due to insufficient knowledge, herd behavior, confirmation bias, and frequent trading.Therefore, based on these findings, it is strongly suggested that concrete pension and investment education provided by both the government and professional investors is essential for the proper and effective management of private pensions.