Will youth savings take a leap forward?… Collaboration on youth financial policy between Yu and Moon

The government has come up with a plan to allow a lump sum payment to be transferred to the Youth Leap Account using the maturity refund of the Youth Hope Savings Account.

The plan is to increase the lump sum already saved, but it is unclear how much response there will be as the popularity of youth leapfrog accounts has waned.

Reporter Na Yeon-soo reports.

[Former President Moon Jae-in / February of last year: Youth Hope Savings is a new system established this year to support asset formation for young people struggling due to COVID-19.] The Moon Jae-in administration’s Youth Hope Savings, which expires in February next year

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If you pay for 2 years within the limit of 500,000 won per month, you will receive an interest rate effect of close to 10% per annum, including bank interest, savings incentives, and tax exemption benefits.

[President Seok-yeol Yoon / 2023 budget speech (October 2022): In order to support the formation of mid- to long-term assets among young people, a new Youth Leap Account is being introduced… .]

The Yoon Seok-yeol government’s Youth Leap Account is designed to allow you to save up to 50 million won over 5 years with a monthly limit of 700,000 won.

In the case of the maturity refund of the Youth Hope Savings Account, the government’s plan is to specifically allow a lump-sum payment and attach government subsidies directly to the corresponding amount.

For example, if you deposit the maturity refund of 12.6 million won of your desired savings directly into a Youth Leap Account with an annual interest rate of 5%, it will be recognized as a payment of 700,000 won per month for 18 months.

If you save 700,000 won per month for an additional 42 months, the먹튀검증 5-year maturity refund is 49.4 million won.

If you pay 700,000 won per month for 5 years to the Youth Leap Account, you can benefit by more than 400,000 won, and more than 4 million won more than if you pay into general savings.

The problem is that the popularity of these youth accounts is fading.

The Youth Hope Savings Account, which was so popular that the banking app crashed when it was launched, has been canceled by one in four people.

The Youth Leap Account, launched last June, had only 422,000 subscribers as of August, or 13.7% of this year’s target.

This is because, in an era of high interest rates and high inflation, it is burdensome for young people to add to their savings every month and even to maturity in 5 years.

[Seong Tae-yoon / Professor of Economics, Yonsei University: If it is designed in a way that is out of sync with actual demand, I think it will be necessary to change the conditions, etc., to a form that allows young people to plan their own future. ]

It is good to try to maximize policy effects by linking previous governments and systems, but it is pointed out that there is a need to also look at the changed economic environment and the reality of young people.

This is Na Yeon-su from YTN .

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