This year's basic pension will continue to be increased by 4%. On April 11, there was also a news that the country had launched an individual pension project. When the two news came out, many children sent me a private letter saying that they would pay their pension every month, hundreds of yuan a month, thousands of yuan. How much money can they get back after retirement? Will it lose money? Will the pension be gone when it is paid out, or will it last until death? I can still live with 10000 yuan a month. After retirement, if I want to continue to live a decent life, what should I do? Although almost everyone is paying pension insurance, few people really understand the operation mode of pension insurance and do not know how to calculate pension. So I will explain the pension policy for you in detail.
First of all, let's talk about the national basic endowment insurance. According to the World Bank's proposal, a country's pension should be composed of three pillars, namely the so-called three pillars. What are the three pillars?
The first pillar is the mandatory endowment insurance led by the state or the government. In China, it is mainly the endowment insurance for urban workers, the endowment insurance for government institutions and flexible employees, and the endowment insurance for rural and urban residents of farmers. These are the compulsory endowment insurance dominated by the state, which is the first pillar.
So the second pillar is dominated by enterprises. In our country, there are mainly two. One is called enterprise annuity. Some large enterprises will set up enterprise annuity for their employees, and the other is occupational annuity of government institutions, which is non mandatory related to enterprises or government institutions.
The third is the commercial endowment insurance purchased by individuals themselves. If you go to the insurance company or bank to buy a commercial endowment insurance, the insurance may be tax deferred. The tax deferred type means that you can pay the endowment insurance without tax deduction, or you can pay the endowment insurance with non tax sources, which is the personal and commercial endowment insurance with tax deferred or non tax sources. The pension insurance of a country should be composed of these three pillars. The first pillar of our country is an absolute leader. Let's take the pension insurance for urban workers in the first pillar as an example to illustrate the operation mode of pension.
Let's talk about the endowment insurance for urban workers, or simply the enterprise endowment insurance. The endowment insurance for urban workers consists of two parts. The first part will deduct part of your endowment insurance when you pay your salary. This is the personal endowment insurance, which is about 8% of your salary, However, this salary does not include your bonus or some other parts, and then there is the additional part that the enterprise will pay for you. How much will the enterprise pay? Now the state stipulates that the salary is 16%, and the total salary is 24%. Of course, the part paid by the enterprise is extra. For example, if your company pays 10000 yuan, it will deduct 800 yuan from your 10000 yuan to pay endowment insurance, and then the enterprise will give you an additional 1600 yuan to pay endowment insurance. Although the 2400 yuan has been paid to the state as the endowment insurance fund, their whereabouts are different, The endowment insurance paid by individuals is entered into an individual endowment insurance account. The account for individual endowment insurance is an accumulation system. That is, the more you pay, the more money you have here. At the same time, the country will make some investment, so there will be some interest here. Moreover, the personal account follows people. For example, you don't want to work in Guangdong for a while, and you are going back to your hometown in Yunnan, This person's account follows you. If this person dies early unfortunately, the money in this personal account can be inherited, so the money in this person's account is equivalent to your money in a small national treasury. This is your own money.
The part that the enterprise looks for is called the pooling account, and the pooling account is not the accumulation system, but the pay as you go system. What is the pay as you go system? That is, our pension insurance benefits are paid to retirees. When we retire, the next batch of enterprises that are paying pension insurance will pay our salaries, which is pay as you go. Pay while you collect it. This is the national pooling account. The overall plan account is different from the individual account. The overall plan account is managed uniformly in this provincial unit. If we have worked in a developed province for many years, and then we are about to retire, we are going back to our hometown in the mainland. People in your hometown may not welcome you. Why? Because you go back, but you can't bring back the money in your overall plan account, You mean that after you go back to your hometown, you divide the money in your hometown's pooling account, right? So in many places, he doesn't welcome you back. These are personal accounts and pooling accounts. At the end of the pension, your personal account will give you some money, which is called personal pension. This personal pension is related to how much you pay. In addition, the pooling account will also give you money, which is called basic supplementary pension. At last, your monthly pension is composed of these two parts, which are personal pension and basic pension, This is the money you can get every month.
So what are the conditions for getting a pension? First of all, the pension should be at least 15 years old, and the second is to reach the retirement age. Generally speaking, women are 55 years old and men are 60 years old, so you can take the pension. Some students may think that if only 15 years is enough, then I don't have to pay it again after 15 years, and it will be a waste. If you want to figure out this problem, you have to figure out how the pension is calculated. Let's study the calculation method of pension. Just now, we said it is divided into two parts, one is personal pension, the other is basic pension, right?
Let's start with personal pension. Personal pension is relatively easy to calculate. Personal account pension is equal to the balance of your personal account when you retire, that is, the money you pay each month plus the investment income? Divided by what? Divided by the number of months, right? What do you mean?
First, let's talk about the balance of personal account. For example, there is a man named Zhang San, whose monthly salary is 10000 yuan. Then he worked from 25 to 60 years old for a total of 35 years. Let me ask you what the balance of his personal pension account is? The balance should be 800 yuan per month, multiplied by 12 months per year, multiplied by 35 years, and finally 336000 yuan. This is the balance of his personal account. What does the number of months of payment mean? If he retires early, he will receive pension for a long time, so the number of months of payment will be more. If he retires late, the number of months of payment will be less. If you retire at the age of 60, the month of payment is 139. There must be a table listing the number of months of payment at different times. According to the situation of Zhang San, the balance of his personal account is 336000 yuan, and then divided by the number of months of payment 139. Finally, the monthly personal pension is 2417 yuan.
Through this formula, you can find that if you pay more money, the balance in your personal account will be more, so your pension will be more, and this pension must be yours. Even if we don't die, then this money can be inherited by relatives, and it is an endowment insurance, which means that even if all the money in your personal account is spent, he will continue to pay, He will not say that because this person lived to be 100 years old and lived to be 80 years old, the pension will be used up, and will not be paid later. He will pay it intermittently until the death of this person, so it is called endowment insurance. With this person receiving pension insurance, will the balance of his personal pension become less and less? The pension we get every month will not change. I will not pay you less every month because your account balance is less. In addition, this is the pension calculated every month. If the state raises the pension later, such as 4% every month and this year, you can add 4% to this amount. He is up but not down.
Well, let's look at another part, namely the basic pension. The algorithm of the national pay as you go basic pension is a little complicated. It is equal to the average salary of the city when the person retires, then multiplied by 1/2 plus the average contribution index, then multiplied by a contribution period, and then multiplied by 1%. This formula is a little complicated, Let's start with the city average wage when you retire. It's easy to understand that when you retire in a big city, the city average wage is high, so your basic pension will be high. If you want to go to a small city, the city average wage is low, so you will get less basic pension. There is another time limit that is easy to understand. You pay 15 years and I pay 30 years. This year is also easy to understand. The trouble is the average payment index. What does the average payment index mean? Let's divide your pension salary by the city's average salary. For example, Zhang San, he doesn't get 10000 yuan a month. Let's assume that the city's average salary is 5000. Then his contribution index is 2, and his contribution index is 2. If the city's average salary is 10000, his contribution index is 1.
So because the average wages of Zhang San's company and city are constantly changing, the contribution index must be an average value called the average contribution index. Let's assume that the average wages of the city where Zhang San lives are 5000 yuan and remain unchanged, and then it always pays the endowment insurance at 10000 yuan, so the average contribution index is 2 ÷ × 1/2+2, then multiply it by 35 years, and then multiply it by 1%. Then you can calculate that Zhang San's basic pension every month is 2625 yuan, which is the basic pension every month. How much is the total amount per month? The amount in the personal account just mentioned is 2417 yuan. If the country is not long, it will always be this amount. If the country is long, it will increase with the increase. Then add in the basic pension, it is 2625 yuan. The total amount is 5042 yuan. You see, he worked 10000 yuan a month before retirement, right? After retirement, the replacement rate of 5000 yuan a month for pension is 50%, which can basically maintain a decent life, right?
Now the average life expectancy in China is about 77 years. If Zhang San retires from 60 to 77, he can basically get a pension of about 1 million yuan. At that time, he paid more than 300000 yuan to get 1 million yuan, which is almost three times the income, right? So we should think about whether this pension should be paid or not? In addition, if Zhang San dies, his relatives can also get two sums of money, one is called funeral expenses and the other is called pension.
After September 1, 2021, the temporary measures for the treatment of survivors of basic endowment insurance for enterprise employees began to be implemented. If Zhang San died, his relatives could also get a funeral fee and pension. The funeral fee and pension are calculated according to the per capita monthly disposable income in the city, not according to the monthly average wage, but according to the monthly disposable income. The funeral fee is the per capita monthly disposable income of two months, and there is pension, This pension is related to the number of years you have paid and received your pension. It is the pension between 9 and 24 months. For example, one person died in Beijing. The per capita monthly disposable income in Beijing last year was 6793 yuan? If you get two months' funeral expenses and nine months' pension, you can finally calculate that it will reach 74723 yuan, right?
We can see whether this pension insurance should be paid or not. The pension insurance benefits of government agencies and institutions after retirement are better. Flexible employees or rural personnel without formal labor contracts can actually pay basic pension insurance for urban and rural residents themselves. The pension insurance for urban and rural residents has different payment levels, and different regions are not the same, For example, in 2022, the individual contributions to the endowment insurance for urban and rural residents in Beijing will be from 1000 yuan to 9000 yuan a year, while in 2019, the individual contributions to the endowment insurance for urban and rural residents in Linjiang City, Jilin Province will be from 100 yuan to 2000 yuan a year, and the government will also give corresponding subsidies. As long as you have paid 15 years to retire, you can also get the pension, and the more you pay, the more you will naturally get, For example, according to the standard of Linjiang City in 2019, if you pay 50 yuan a month and 600 yuan a year, you can get 176 yuan a month after you are 60 years old, which is 2117 yuan a year. If you have not paid 15 years by the age of 60, you can also make a one-time payment, and then you can get the pension.
In 2021, the number of people participating in China's basic endowment insurance, including enterprises, institutions, flexible employees, and farmers, will reach 1.03 billion. If you consider that there are more than 200 million unemployed teenagers in China, China's endowment insurance will basically achieve full coverage, which is the first time in China's thousands of years of history and in the history of new China for decades, If you want to figure out how much you can get after retirement, I recommend you a platform, which is called the national social insurance public service platform. Here you can choose the pension insurance benefits calculation, and then select enterprises or institutions or urban and rural residents' insurance according to your insurance type. Then you can enter various indexes, such as your age, salary, payment years, etc, That way, you can figure out how much you can get after retirement.
But please note that the money you got in the first month of retirement is still calculated here. Because of inflation or economic development, the state will often raise the salary of retirees. For example, the Ministry of Human Resources and Social Security will raise the salary of retirees by 4% in May this year. The pension of retirees in China has been rising for 18 consecutive years. In addition to the national basic pension, the state will also provide the minimum living security for the elderly in rural areas, For the affluent people in the city, after retirement, they will still have rent income. If you have a large number of grandchildren, your children will also provide living expenses for the elderly. If you want to take these factors into account, you can also see how much money you can get by yourself. Then I recommend another app called HSBC Select You. You can open HSBC Select AP P, and then you can select all tools to input your salary, There is also expenditure information. You can choose whether you have other income after retirement, and then he will tell you how your pension economy will change. If you click the setting button, you will find that she has many options, such as the pension growth rate, which means that the country he is considering also needs to adjust the retirement income of retirees, as well as the life expectancy, the time of living in the pension month Inflation rate and so on, you can adjust according to your own situation. I have a more comprehensive understanding of my retirement life.