How to Avoid Unexpected Tax Burdens and Health Insurance Premiums When Receiving Retirement Benefits or Investing in Monthly Dividend ETFs
When receiving retirement benefits in a lump sum or investing in monthly dividend ETFs, When receiving retirement benefits in a lump sum or investing in monthly dividend ETFs, you may face unexpected tax burdens and health insurance premiums. This article discusses how to prevent these issues and effectively reduce taxes. It introduces strategies for actively utilizing Individual Savings Accounts (ISA) and pension accounts, and receiving retirement benefits in the form of a pension. Mr. A, a 50-year-old office worker preparing for retirement, started investing in monthly dividend ETFs as part of his retirement planning. However, as his dividend income exceeded 20 million KRW per year, he received an unexpected tax bill. He became subject to comprehensive financial income taxation, which applies a tax rate of up to 49.5%, and had to bear additional health insurance premiums. To prevent such tax issues, experts strongly recommend actively utilizing ISAs and pension accounts. Dividend inc...