The pension will increase by 120 yuan in 2024. Why did it not reach 3%? Will it

March 8,2024

Entering August, the 2024 pension adjustment for retirees has finally come to an end. The elderly have all received their supplementary pensions for this year. Some friends have said that their pensio...

Entering August,the 2024 pension adjustment for retirees has finally come to an end.The elderly have all received their supplementary pensions for this year.Some friends have said that their pension has increased by 120 yuan this year,but the increase did not reach 3%.What is going on?

What factors are related to the growth rate of the pension for retired elderly people?

According to the requirements of the 2024 national pension adjustment notice for retirees,the national adjustment ratio is determined based on 3% of the average monthly basic pension for retirees in 2023.Therefore,3% is the national adjustment ratio,not the increase ratio for everyone.

The specific adjustment of pensions is carried out through three methods: fixed amount adjustment,linkage adjustment,and appropriate inclination.This has been the approach that has been consistently followed since 2016.

① The fixed amount adjustment reflects the principle of fairness,with everyone receiving an equal increase in money.In fact,from this principle,the lower the pension,the higher the increase ratio.For example,the fixed amount adjustment standard in Shandong Province this year is 32.6 yuan,a pension of 1000 yuan has an increase of 3.26%,while a pension of 4000 yuan has an increase of only 0.815%.

② The linkage adjustment reflects the incentive mechanism of "more contributions,more benefits,and longer contributions,more benefits." It is generally divided into two types: adjustment based on contribution years and adjustment based on pension level.The adjustment plans of each province are different,and the methods of adjustment also vary greatly.

For adjustment based on contribution years,Beijing increases by 2.4 yuan for each year of contribution,while Hebei Province only increases by 1 yuan,and Sichuan Province only increases by 0.5 yuan for each year of contribution within the first 15 years.

Adjustment based on contribution years also does not reflect the role of the pension level.For example,in Hebei Province,a 40-year work history increases the pension by 40 yuan.For a pension of 4000 yuan,the increase is 1%,but for a pension of 8000 yuan,it is only a 0.5% increase.Based on the level of pension adjustments,this part is indeed directly linked to the pension level,although the proportion of the adjustment is not very large,generally ranging between 0.9% and 1%.For instance,both Hubei Province and Shanxi Province have a linkage ratio of 1%,which is equivalent to one-third of the total pension adjustment amount.

③Inclined adjustments are primarily for elderly retirees and retired personnel in remote and arduous areas to enhance the adjustment level,which means an additional increase in a certain amount of pension.

Most places offer an additional pension increase for elderly individuals who are 70 years old or above.Beijing and Zhejiang Province are relatively earlier in this regard,providing an extra pension increase for individuals who are 65 years old or above (with Zhejiang Province limited to women).Beijing also offers an additional pension increase of 5 yuan for retirees who are 65 years old or above and have a working age of more than 30 years,which is quite a unique local policy.

The inclined adjustment for remote and arduous areas is categorized according to the 1-6 types of areas designated by the state,but the specific amount of increase depends on local regulations,and not all provinces across the country have this part of the adjustment.

Generally speaking,it is quite normal for the pension to increase by 120 yuan with a rise of less than 3%.This is because the higher the pension level,the more money will be added,but the proportion will be lower.

Taking Shandong Province's 2024 pension adjustment plan as an example,for retirees with 40 years of service,the fixed adjustment is 32.6 yuan,and the adjustment based on the payment duration is 36.5 yuan.The pension level linkage ratio is 0.9%,and for retired elders with a pension of 3,000 yuan to 10,000 yuan,the amount of increase is 27 yuan to 90 yuan.

Even without considering the inclined adjustment for the elderly,the above pension increase amounts to 96.1 yuan to 159.1 yuan,but the growth ratio drops from 3.2% to 1.59%.If the length of service is 40 years and the total pension adjustment for this year increases by 120 yuan,it indicates that the pension level is above 5600 yuan,with a rise of more than 2%.However,such a pension level is already far beyond the treatment level of the vast majority of retired personnel.

Will the pension increase in the second half of the year?

In the second half of 2024,there will indeed be another increase in pensions across the country,but the scope of the increase is for those who retired since January 2024.This is because the social average wage or pension calculation base used in their pension calculation upon retirement is based on the figures from 2023.Once these figures are announced,the pension will be recalculated.

Compared to the pension adjustment in 2024,it is precisely for those who retired after December 31,2023,thus forming a connection.Therefore,the pension treatment for retirees this year does not participate in the adjustment and does not suffer a loss,because there will be another increase in the pension recalculation in the second half of the year.#Top Headline Creation Challenge# #Pension Increase#

Keep In Touch