Got a Lump Sum? Turn It Into Monthly Income With Korea’s Immediate Annuity
💬 “I just wish I had something like a paycheck after I retire…”
This is the most common concern for people nearing retirement.
And the solution? Immediate Annuity Insurance.
It's a type of Korean pension plan where you invest a lump sum
and start receiving monthly income from the very next month.
Perfect for retirees, severance recipients, or those with sudden windfalls—
this product turns your money into a stable, reliable income stream.
💡 What Is an Immediate Annuity?
In Korean insurance terms, this is a type of lump-sum annuity plan.
| Structure | Details |
|---|---|
| Premium Type | Lump-sum payment (e.g., 50M or 100M KRW) |
| Payout Start | Immediate – next month after payment |
| Payout Options | Level, Increasing, Fixed-Term, or Lifetime |
| Tax Benefit | Possible tax exemption if held ≥ 10 years & meets criteria |
In short:
You convert your savings into a monthly “salary” for life.
👥 Who Should Consider an Immediate Annuity?
✅ Those who received a retirement package
→ Too risky to invest in a business
→ Bank interest is too low
→ Instead, turn that lump sum into monthly income
✅ Those who sold real estate
→ Downgraded from house to monthly rental
→ Use the proceeds to secure a monthly pension
✅ Those who received an inheritance or gift
→ Instead of spending freely
→ Convert it into long-term income to preserve capital
💬 Real Client Case: Mr. B, 60 years old
| Client Profile | Details |
|---|---|
| Age | 60 (pre-retirement) |
| Funds | 100M KRW retirement payout |
| Product | Immediate annuity (Level payout) |
| Monthly Income | 300,000 KRW for life |
| Total Expected (20 yrs) | 72,000,000 KRW |
He said:
“Having a fixed income each month gives me peace of mind.”
It helped with budgeting, health insurance premiums, and daily living expenses.
🔎 Things to Check Before You Sign
✅ Start Date Options
→ Some policies offer “deferred start” for better benefits
✅ Level vs. Increasing Payout
→ Choose level if you need a steady current income
→ Choose increasing if you want to counter inflation
✅ Tax-Free Status
→ Usually tax-free if:
→ Held 10+ years, under 1B KRW/year in contribution,
→ Total under 5B KRW
✅ Payout Structure
→ Fixed-Term: Limited years, larger monthly payout
→ Lifetime: Paid as long as you live (lower monthly, but longer duration)
📌 Recommended For:
-
Anyone aged 60+, pre- or post-retirement
-
Those holding severance, inheritance, or large cash assets
-
People prioritizing stable, guaranteed income over market risk
-
Those looking for a second stream of income beyond National Pension
✅ Final Takeaway
Immediate Annuity isn’t just a pension—it’s your next paycheck.
Once set up, you get:
✔ Monthly income
✔ Lower risk than investments
✔ Potential tax exemptions
If you have a lump sum now,
this is not the time to “spend”—
it’s time to strategize for survival.
Let your money pay you, not the other way around.
🗓️ Coming Next
👉 “Already Have a Pension Plan? You Might Be Losing Money Without a Check-Up”
We’ll cover:
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When to start payouts
-
How long you should receive them
-
Whether your beneficiaries and tax status are correctly set
