This post outlines my updated 3-tier pension portfolio for 2025. While there aren’t major changes from 2024, adjustments were made due to the need to set aside additional cash this year. Here’s a breakdown of the portfolio:

Type	Name/Account	Annual Contribution	Investment		Remark
National Pension	NPS (KR)	Income 4.5%	N/A		1st tier pension
	Social Security Retirement (US)	Income 6.2%
Corporate Pension	DB	–			2nd tier pension
Individual Pension	Pension Saving	6M KRW	KODEX S&P500TR (50%)	KODEX Nasdaq 100TR (50%)	3rd tier pension
	ISA	5.72M KRW
	IRP	3M KRW	KODEX S&P500TR (70%)
	Roth IRA	$7,000	Vanguard S&P 500 ETF (VOO)

Individual Pension

For the personal pension, I plan to invest a total of 9 million KRW in Pension Savings Funds and IRP accounts, taking full advantage of tax deduction benefits.

As a side note, I file taxes in both Korea and the U.S. for my combined income, and Korea’s effective income tax rate is higher. Last year, I mistakenly thought I couldn’t claim a tax deduction for foreign-paid income and invested everything in Pension Savings Funds, which allow 100% allocation to high-risk assets. However, I discovered I could claim the deduction, so I will resume investing in the IRP account this year for better tax efficiency.

The investment allocation is 50% S&P 500 and 50% NASDAQ 100. For the IRP account, 30% of the safe assets remain invested in KODEX TDF2050 Active since KODEX TDF2060 Active has not yet been launched. (For reasons why I chose KODEX TDF2050 Active, check the post below.)

Investment Plan for Pension Savings Account and IRP Safe Asset 30% Option in Korea (feat. S&P 500)

For ISA, the 3-year maturity arrives this November, with 24.28 million KRW invested so far. I plan to contribute an additional 5.72 million KRW this year, bringing the total principal to 30 million KRW. This amount will be transferred to my Pension Savings Fund to receive the maximum tax deduction of 10% of the total principal (3 million KRW).

In my Roth IRA, the maximum contribution limit remains at $7,000 for 2025. I’ll maintain the same amount and add the $1,000 I missed contributing last year, totaling $8,000 this year. I will continue investing 100% in VOO (S&P 500 ETF).

Estimated personal pension investment total for 2025 will be 25 million KRW.

Corporate Pension

Although I would prefer to invest in DC (Defined Contribution) plans, my company operates only under the DB (Defined Benefit) system, so I am unable to make direct investments. When the retirement pension is eventually disbursed as a lump sum, I plan to invest in the Dow Dividend Index.

Future Index Allocation Plan:

• 40% S&P 500

• 30% NASDAQ 100

• 30% Dow Dividend Index

This allocation will provide a steady dividend flow. As for bonds, I don’t plan to include them in my portfolio over the next 10 years.

Additional Investments

Outside of my pension investments, I’ll occasionally invest in individual stocks. For instance, during times of exchange rate spikes and KOSPI drops, I will consider buying Korean stocks. Similarly, during U.S. tech stock downturns, I may pick up U.S. tech stocks opportunistically.

And, as a nod to the Boglehead meme

ZOOM OUT!

[Final Version] 2024 My Pension Portfolio in Korea