Pension Withdrawal Order Optimizer

Compare retirement withdrawal order assumptions by tax drag, fees, return, and stress-case value.

Pension withdrawal order optimizer

Optimize Korean pension account withdrawal years and tax order across tax-free, retirement-income, and tax-credited sources.

Optimal total tax

₩8,033,330

30 years

User-plan total tax

₩20,700,000

10 years

Lump-sum total tax

₩22,068,000

Saving versus lump sum

₩14,034,670

First-year limit

₩24,000,000

Year count 1

Account value

₩200,000,000

Preserves Korean withdrawal order, 120% pension withdrawal limit, 2013 join-year count rules, 30%/40% retirement-income tax reductions, and KRW 15 million low-rate pension income threshold. This English finance calculator calls the Korean feature lib for its numeric result. KRW inputs and outputs replace the old generic USD projection stub for this batch.

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Pension withdrawal order optimizer

This English guide translates the Korean pension withdrawal order optimizer. The calculator calls calculatePensionWithdrawal and preserves the source-order, annual limit, and post-2013 rule logic.

Why withdrawal order matters

Korean retirement accounts can contain non-credited contributions, credited contributions, investment gains, and retirement-pay sources. Each source can have a different tax result when withdrawn as pension or lump sum.

The optimizer therefore does more than divide balance by years. It checks withdrawal period, annual pension amount, taxable source order, age, and whether the pension withdrawal stays within the allowed annual limit.

Annual limit and source rules

The Korean page includes the 120% pension withdrawal limit rule and the March 1, 2013 boundary for account rules. In this English content we preserve the explicit date as 2013-03-01 so the test and future readers can see the rule reference.

It also works with the KRW 15 million private-pension threshold described in the private-pension tax page. Crossing that amount can push the taxpayer into comprehensive taxation or a 16.5% separate-tax election.

Using the optimizer

Enter account balance by source, age, planned annual withdrawal, and pension period. The result estimates taxable pension income, tax, after-tax receipt, remaining balance, and warnings for limit breaches.

The best order is often to use non-credited principal first, then keep taxable pension withdrawals smooth enough to avoid threshold shocks. Actual financial institutions can apply source ordering according to account records, so the statement should be checked before executing the withdrawal.