What on earth happens after retirement?
Just read it in advance, like getting a vaccination
Half the battle is a success!
A super-aging society: realistic solutions for those of us who will face retirement without a moment to spare.

In South Korea, which has already entered a super-aged society, even if we are lucky enough to reach retirement age, we are people who have to live for another thirty or forty years.
As the retirement period from one's primary job, which has been the longest in one's life, is getting earlier, life after retirement is becoming a major concern not only for the 50-60 age group but also for the 30-40 age group.
What changes actually happen immediately after retirement? You might think, "Isn't it obvious?" but if you think about it carefully, you realize you truly know nothing.
This is why studying is necessary even in retirement.
Depending on how you prepare, life after retirement can be a better second act than the first, a new dawn rather than a twilight.
I am lucky to have come across this book today.
Let's prepare for retirement as soon as possible, starting with the small details through a retirement simulation.

9.51 million, this is the number of second-generation baby boomers born between 1964 and 1974.
These people are now on the verge of retirement, and many more will follow suit.
When so many people experience change at the same time, it becomes a social phenomenon that goes beyond an individual problem.
I've walked that path too.
After leaving the stable Korea Electric Power Corporation, I lost everything as the businesses I took on failed one after another… There was a moment of deep despair when I gave up my property, my family, and even my hope in life.
Having attempted extreme measures twice, I endured each day by moving between boarding houses and goshiwon.
What allowed me to get back on my feet again was the new perspective and knowledge I found in the midst of desperation.
--- From the "Prologue"

After retirement, he dreamed of a comfortable retirement with his retirement pay and apartment as his foundation.
But the reality was harsh.
After paying for my children's weddings, I didn't have much retirement money left, and the one apartment I had left wasn't enough to cover the couple's living expenses.
Eventually, he had to get a job as a security guard in his mid-60s.
He said this to me over a drink.
"Danhee, what did I do so wrong? I've sacrificed my whole life for my family, and all I did was buy an apartment like everyone else, yet why am I still waking up at dawn to guard someone else's parking lot?" This is the true meaning behind the number "50%."
This goes beyond simply being an economic indicator of a lack of money.
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It means a society where honest living is not rewarded, a desperate structure where a comfortable old age cannot be guaranteed through normal means.
--- From "Your Future is Like a Coin Toss, 50% Chance of Being a Poverty-Eating Elderly"

Don't be afraid.
It doesn't require complex financial formulas.
As you answer these simple three-step questions with me, your goal amount, once hidden in the fog, will become crystal clear.
The first thing to decide is the couple's 'desired monthly living expenses' after retirement.
According to Statistics Korea, the average monthly living expenses for a couple aged 65 or older is approximately 3.2 million won as of 2023.
But the average is just an average, and your situation may be different.
Please look at the following items and write down as specifically as possible what your monthly living expenses will be as a couple.
Not a vain dream, but the present
It's important to write realistically, imagining a standard of living that you can maintain or a slightly more comfortable standard of living.
Now, we have a much more realistic number: 540 million won.
How about it? Doesn't that daunting 900 million won mountain now feel like a mountain behind our neighborhood, easily surmountable? That's the power of making your goals concrete.
This 540 million won is not a wall of despair, but a clear mountain we must conquer.

--- From "So, How Much Does It Cost? Putting a Clear Price Tag on Retirement Funds in the Fog"

Earlier, we faced the bare face of our home through 'My Financial Statement'.
And I'm sure many of you have noticed one thing in common.
The harsh reality is that most, perhaps all, of my net worth is tied up in the one apartment I currently live in. After retirement, when our paychecks have stopped, what we need is no longer a "big, spacious house."
This is the 'cash flow' that deposits money into my account every month.
The moment your paycheck stops coming, that "sleeping apartment" is no longer a solid asset.
This is because they turn into 'money-eating hippos' that constantly demand monthly property taxes, management fees, and repair fees, but do not bring a single penny of profit to the owner.
At this very point, the courage to downsize becomes the single most powerful weapon that can save the second act of your life, more powerful than any financial technology or product.
Downsizing is a "one-two punch" strategy that most effectively implements the core principles of financial management: "increase income (secure cash flow) and reduce expenses (reduce fixed costs).
The first punch is to cash out unnecessary assets to secure ammunition for the attack, and the second punch is to maximize defense by preventing money from leaking out.

--- From "Why is the courage to downsize your home the most powerful weapon?"

First, can you sleep soundly at night? (Stability) Above all, rental demand must be steady and the risk of vacancy must be low.
This includes residential properties that do not qualify for the competition.
Second, does it deposit money into my account every month? (Profitability) Profitability here doesn't refer to price differences, but rather the "cash yield" I can get each month.
Third, can I immediately convert it into cash when needed? (Convertibility) In case of an emergency, I should be able to sell it at a fair price whenever I want.
Fourth, doesn't it take up my time and effort? (Manageability) It should take minimal time and effort for me to manage it myself.
What are the most ideal "filial piety properties" for retirees that satisfy all four of these conditions?
--- From "Real Estate to Avoid for Retirees VS Real Estate that Pays a Lifetime Salary"

National Pension has a set starting age for receiving pension, but you can receive it up to 5 years earlier (early old-age pension) or up to 5 years later (deferred pension).
This choice will dramatically change the amount of pension you will receive over your lifetime.
For every year you advance your pension, your pension amount is reduced by 6%.
If you advance by up to 5 years (60 months), you will only receive 70% of the original amount, which is a 30% reduction, for the rest of your life.
Unfortunately, it can be considered when your life expectancy is judged to be short due to poor health, or when you have urgent living expenses and no other options.
However, for healthy people, early receipt can be detrimental in the long run.
For every year you delay receiving your pension, your pension amount increases by 7.2% with compound interest.
If you delay by up to five years, you will receive 136% for life, which is a 36% increase over the original amount.
This is the most powerful financial strategy for those who can afford to live until retirement with the rent or other sources of income discussed above.
For example, if a person who is scheduled to receive a pension of 1.5 million won per month applies for a 5-year postponement, he or she will receive 2.04 million won per month (1.5 million won X 1.36) for life starting at age 65.
If you take inflation into account, the amount becomes much larger.
Just a few years of waiting can make the rest of your life much richer.
--- From "National Pension: Trust or Not? Change the Question: How Should It Be Managed?"

We must not repeat that mistake again.
Because the government has provided us with a 'legal tax saving reservoir' and a 'profit-generating power plant.'
This is an Individual Retirement Pension (IRP) account. An IRP isn't just a bank account for receiving retirement funds.
This is your personal safe for retirement, equipped with two powerful engines: 'tax savings' and 'investment'.
Let's explore the secret to fully utilizing this personal safe—how to maximize the performance of both engines. The first and most powerful power of the IRP is its ability to save on taxes.
If you receive your retirement pay in a general account, you will have to pay retirement income tax of 6-15% immediately.
If you received a severance pay of 300 million won, you would start off by having tens of millions of won deducted in taxes.
However, if you receive your retirement pay in an IRP account, you do not have to pay taxes immediately and it is postponed until you receive it as a pension (tax deferral).
And if you receive it as a pension later, you will receive a 30% discount on the retirement income tax you originally had to pay.
It means paying only 7 million won in taxes out of 10 million won.
--- "Retirement IRP, a 'government-approved cheat key' that reduces taxes by 30% and even generates profits"

Now, we need to talk about the most dangerous expense of all, one that's bigger than all those expenses combined and that, once it explodes, will swallow everything up: the black hole of "starting a business without preparation."
People who retire after decades of organizational life often feel a deep sense of loss.
And then, they pour all their last bullets, which is their retirement pay, into starting a chicken restaurant, coffee shop, or convenience store.
What are the results? Unfortunately, the statistics are dismal.
The failure rate of self-employed businesses in South Korea within five years is close to 80%.
This means that 8 out of 10 businesses will not last 5 years and close their doors.
Why do such tragedies repeat themselves? Most often, it's due to unfounded confidence—"I'll be different"—and complacent preparation—"This will do."
Being a competent employee at a company and being a 'president' who has to take responsibility for everything from the ground up are two completely different things.
From inventory management and staffing to marketing, taxation, and customer service, the CEO is a multi-talented individual who must handle every department in the company.
Headquarters prioritizes its own interests over the success of its franchisees.
Behind the flashy interiors and high franchise fees, there are often hidden contract terms that are unfavorable to franchisees and expensive raw material supply costs.
When it comes to startup costs, key money, deposits, and interior design costs aren't everything.
After opening, you need separate 'operating funds' to survive without any income for at least 6 months to 1 year.
Most people go all-in without factoring in these operating funds, and end up in debt after three months.

--- From "The most dangerous expense that swallows up your retirement fund: 'Starting a business without preparation'"