Retirement Pension DC vs DB Calculator

Compare DC and DB retirement pension scenarios by balance, contributions, return, tax drag, fees, and downside case.

Retirement pension DC vs DB calculator

Compare Korean DB and DC retirement pension outcomes, conversion timing, DC return, fees, retirement-income tax, and scenario returns.

DB total

₩334,658,399

DC total

₩376,686,026

DC minus DB

₩42,027,627

Break-even DC return

3.3%

DB tax

₩11,270,261

DC tax

₩14,391,132

Uses simulateDcVsDb with the legal employer contribution ratio of annual salary divided by 12, DC default-option returns, fee drag, conversion analysis, and 2026 Korean retirement-income tax deductions. This English finance calculator calls the same Korean pure calculation module as the Korean page. KRW amounts, Korean tax rules, insurance terms, statutory limits, and scenario assumptions are preserved instead of the old generic percentage stub.

Related calculators

Retirement pension DC vs DB guide

This English guide translates the Korean retirement pension DC vs DB simulator. The calculator calls simulateDcVsDb and keeps Korean DB formula, DC contribution, conversion, default-option, and retirement-income tax logic.

DB and DC formulas

DB, or defined benefit, is calculated from the average wage near retirement and total service years. It can be favorable when salary growth is strong near the end of the career because the final wage drives the benefit.

DC, or defined contribution, uses the annual employer contribution equal to annual salary divided by 12, then compounds the worker-directed account by the selected return rate after fee drag. The result is sensitive to DC return, fee rate, and contribution timing.

Conversion and default-option analysis

The Korean simulator compares DB-to-DC, DC-to-DB, and compare-only scenarios. Conversion age matters because late conversion leaves little time for compounding, while early conversion can lose DB salary-growth leverage.

The DC scenario table uses conservative, moderate, and aggressive return assumptions from the Korean constants, and the guide also references the default-option system that automatically invests idle DC assets when the worker does not give an investment instruction.

Tax and extra contribution rules

Retirement-income tax is calculated with service-year deductions and converted-salary deductions, then local tax is added. Pension payout can receive a retirement-income tax reduction of 30% for under 10 years and 40% for 11 years or longer.

The DC side can include additional self-contribution. Pension savings plus IRP can be modeled against the Korean annual tax-credit limit context: KRW 6 million pension savings plus KRW 3 million IRP, total KRW 9 million, with 16.5% or 13.2% tax-credit rates depending on income.

Korea-specific assumptions

This page is Korea-based. Actual DB/DC conversion availability depends on company plan rules, retirement pension provider rules, tax law in force at retirement, and whether the payout is taken as lump sum or pension.