Beginning next year, subscribers will be allowed to link their retirement pension and personal pension accounts.
 
The government will also ban the sale of savings pension trusts that guarantee the principal.
 
The Financial Services Commission, the Ministry of Strategy and Finance and other government agencies announced the new measures on Sunday which are aimed at nudging investors to manage their pensions more aggressively.
 
As a result, those aged 55 or older who are eligible to receive pensions won't have to pay any taxes when combining their retirement and personal pensions.
 
Until now, such movements were considered to be a lump sum withdrawal or a termination of one's bank account, which required an income tax payment.
 
Meanwhile, existing subscribers will be able to make additional payments to retirement savings trusts that guarantee the principal, although the government will ban new subscriptions.
 
The Financial Services Commission said personal pensions aren't making enough profit as they are being managed too conservatively. It said the new measures are expected to increase the ratio of pensions that invest in stocks and funds.