When you need the money
The pension account's benefit assumes you draw it as a pension from age 55. Withdrawing early claws back the credit as other-income tax, which can reverse the comparison entirely.
Tax Planning Tool
Comparador ISA vs Plan de Pensiones — Beneficios Fiscales
Compara los beneficios fiscales entre ISA y plan de pensiones según la inversión anual y el plazo.
ISA vs Pension Savings Comparison
Compare tax benefits between ISA and pension savings (IRP) accounts.
* Simplified simulation. Tax rules may change — consult a professional.
Official sources
확인일 2026-09 · 한도와 공제율은 세법 개정으로 바뀌므로 해당 과세연도 기준을 원문에서 확인하세요.
These two accounts are not rivals
Korea's ISA and pension savings accounts (연금저축/IRP) relieve tax in different directions. A pension account gives you a credit now and taxes the money when you draw it; an ISA gives you nothing now but exempts part of the gain at maturity and taxes the rest separately at a low rate. This tool converts both into a comparable end amount.
How to use
- 1 Enter your annual contribution and the number of years.
- 2 Enter an expected return — running an optimistic and a conservative case is more useful than one.
- 3 Pick your salary band; the credit rate changes there.
- 4 Compare the result with the credit received now and the tax paid later both counted.
Three things that decide it
Whether your rate is high now
A tax credit reduces tax you owe today. The higher your income, the bigger the immediate gain; with little tax to offset there is nothing to credit, which favours the ISA.
The limits are separate
The two have their own contribution and tax limits, so filling one and then using the other is possible. It is often not an either-or choice.
Preguntas frecuentes
What determines the credit rate?+
Your total salary (or global income). Article 59-3 of the Income Tax Act sets different credit rates by income band, with the higher rate applying below the threshold, and the creditable contribution limit is set separately across 연금저축 and IRP combined. Bands, rates and limits are amended often, so check the figures for your tax year with Korea's National Tax Service or the national law information centre. (Checked 2026-09)
What happens if I close it early?+
Taking the money in any form other than a pension triggers other-income tax on the credited contributions and the investment gains — you give back what you were refunded. Money you will need within five years generally does not belong in a pension account. This calculator assumes you hold to maturity and does not model early closure.
Do I have to choose one?+
No. The contribution limits are set per account, so you can use both. If you need an order, it is a trade-off between a certain refund now and liquidity: if you have tax to offset and can lock the money until 55, the pension account first; if you may need it sooner, the ISA.
What return should I assume?+
This comparison swings heavily on the return assumption. Rather than trusting one figure, run a conservative and an optimistic case and see under which assumption the answer flips — that is the more useful output.
Related calculators
For reference only; your actual tax depends on income composition, dependants and other deductions. Limits and credit rates change with tax law, so confirm with the official sources below before contributing.