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www.groovekorea.com / February 2014 38 ABOUT ThE AUThOR Paul Sharkie is the Foreign Client Relationship Manager for Shinhan Bank’s Foreign Customer Department. Please visit Shinhan Expat Banking on Facebook for more information. The banking information provided in this column is based on Shinhan Bank policies and may not be applicable to all banks in Korea. — Ed. A pension plan can be set up by one of three parties: you (through a private pension scheme), your employer or the state. For those unfamiliar with the specifics, deciphering a country’s pension terminology often acts as a barrier for those just hoping to make basic inquiries, not to mention trying to make the right decision regarding one’s own pension. One thing to note, however, is that in order to live a comfortable retirement you will likely have to consider more than one option. Let’s break down the three types we should all consider. Company pensions Not every employer runs a pension scheme, so it’s well worth finding out whether or not yours does and, if so, what’s on offer. There are two types of company pensions. One is known as defined benefit (DB), and the other is called a defined contribu tion (DC). If your employer is offering to contribute to either type of scheme, it is usually worth participating. Defned beneft plans Defined benefit plans guarantee a lump sum based on your salary and the number of years you have worked for a company. DB plans are unfortunately becoming less common in the marketplace today due to the expense and risk exposed to the employer who ultimately bears the responsibility to invest in order to fund the sums promised to each employee. DB plans are gradually being replaced by Defined Contribution plans, which hold more risk and responsibility for the employee. ThE MOnEY COLUMn Edited by Matthew Lamers (mattlamers@groovekorea.com) InsIGhT never too early to plan your retirement Column by Paul Sharkie / Illustration by Michael Roy