Korean Job Discussion Forums

GoldMember · Joined: 24 Oct 2006

For those of you who have been here for a while, and think they have accumulated a nice litle nest egg, that nest egg might not be there.

http://online.wsj.com/article/SB124707991156113281.html

One thing is for sure: Mr. Lee's Keynesian habits are taking a toll on South Korea's finances. The country's fiscal deficit as a percentage of GDP (excluding monies received from social security funds), is projected to hit 5% this year, up from a 1.5% deficit last year. Most of this deterioration comes courtesy of government-related policy spending and the debt to issued to fund it.

Now the people who run the pension funds are supposed to use the money to protect the future of widows, children, orphans and English teachers, by making the best and wisest investments. The money should be totally at arms length from the government. Instead some of the money (how much, I'd like to know) is being used to fund massive deficits.
Clearly those who are paid to look after your money are siphoning money off to support the policies of the current government.

ppcg4 · Joined: 16 Oct 2008

If my school wasn't illegally skipping my pension, I might be concerned.

Milwaukiedave · Joined: 02 Oct 2004 Location: Goseong

Well one way to ensure you don't get taken is just to keep pulling your pension money out every few years and putting it in a safe investment (that is if you have that option, some don't). That's assuming you don't plan on retiring here in Korea. I've only pulled my money out once and it was because I went home and then came back (didn't plan on that though).

Julius · Joined: 27 Jul 2006

I have a nice little pension nest egg, but can't touch it.

Refunds are only for Americans and Canadians. So unfair!.

halfmanhalfbiscuit · Joined: 13 Oct 2007 Location: Seoul

big_fella1 · Joined: 08 Dec 2005

Captain Corea · Joined: 28 Feb 2005 Location: Seoul

The sky is falling

If I listened to the OP's every post, I would have thought that Korea would be done by now.

tzechuk · Joined: 20 Dec 2004

Korea's economic structure is nothing short of a joke...

But my pension money should be safe - I am with a private university using a private pension company.

GoldMember · Joined: 24 Oct 2006

Don't be complacent about being in a private pension plan. Even in Western countries, pension monies have been plundered by companies. Think of Enron as a classic example. Not saying it will happen, just be aware of the possibility.

Unposter · Joined: 04 Jun 2006

Not to say that the government isn't raiding its pension scheme (I know that the U.S. government has or had raided social security a number of time to pay things off) but nowhere in the article you linked does it say that it is.

How do you know that the Korean government is raiding (I assume) the government pension plan?

As for government spending, I don't think there is a major economy that hasn't made major outlays since the "global recession" started. Not to say that makes it right but I wouldn't single out the LMB administration either. I have read some economists who think there isn't enough government spending considering the scope of the world's economic problems.

Silence Dogood · Joined: 09 Jul 2009

A pension is only as safe as your wallet.

Silence Dogood

tzechuk · Joined: 20 Dec 2004

Stones1962 · Joined: 26 Nov 2008 Location: Europe/Asia

It's safe. Just be thankful you won't have to rely on US Social Security....nothing but a Ponzi scheme

Young FRANKenstein · Posted: Mon Jul 13, 2009 1:49 am Post subject:

Palladium · Joined: 26 Apr 2009 Location: Korea

I have a retirement fund, it's a heavy box of gold, palladium and platinum. Been buying with about 80% of my salary for years. Metal is down a bit now, but I'm thinking of 3-5 years from now. The retirement money is just a new car and apartment when I do decide to go home.