How to arrange pensions? How much pension is appropriate per month? At what age
Many people may still be uncertain about how to arrange their pension funds (employee basic old-age insurance). In fact, with the development of the economy and society, pensions are the greatest support for our lives in old age. It is essential to participate in old-age insurance as early as possible, and it is generally recommended to make contributions for at least over 30 years.
Firstly, I suggest starting to participate in old-age insurance from the age of 16 or 18, in the form of self-employment, so as not to affect studies or the accumulation of contributions. Generally, at the age of 16, one can participate in social insurance as a minor worker, and pension insurance contributions can begin at 16.
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Everyone understands that the more you pay into the old-age insurance, the more you get, and the longer you pay, the more you get, which is clearly reflected in the calculation of pensions and the growth of pension benefits.
For example, in the current pension calculation formula we use, the contribution period is directly linked to the average social wage. With a contribution period of 15 years at a 60% tier, one can generally only receive 12% of the average social wage from the previous year upon retirement. If the contribution period reaches 40 years, one can receive 32%. At present, with a contribution period of 40 years, the pension is generally able to receive an amount of 3,000 to 4,000 yuan or more, which is a higher income level than many working young people.
When it comes to the growth of pensions, in addition to fixed adjustments and preferential adjustments, there are also adjustments based on the contribution period and the level of the pension itself. It is hoped that in this year's pension adjustment plan, for Shandong Province, those with contribution periods of less than 15 years, 16 to 25 years, 26 to 35 years, 36 to 45 years, and over 46 years, the basic pension will be increased by 0.8 yuan, 0.9 yuan, 1.0 yuan, 1.1 yuan, and 1.2 yuan per year of contribution, respectively. Moreover, when adjusting according to the proportion of the pension, the increased pension level due to the extended contribution period also plays a role. Therefore, the contribution period is quite "popular" during pension adjustments.
From the perspective of the pension replacement rate, if the average social wage remains unchanged and without considering the interest on the account, a pension replacement rate of 71.43% can be achieved with a 30-year contribution at a 60% base. With a 40-year contribution, the pension replacement rate can even reach over 95%. According to internationally accepted standards, as long as the pension reaches 70% to 80% of the income level before retirement, it can maintain an unchanged lifestyle. Therefore, it is very necessary to plan early.
Secondly, if we can participate in the old-age insurance earlier, on the one hand, it can reduce the future insurance burden, and on the other hand, it can provide more options for ourselves.Based on experience, the earlier one starts to pay into social insurance, the lower the average social wage, and consequently, the less money one has to pay. For instance, this year, the minimum contribution base in Beijing has increased from 6,326 yuan to 6,821 yuan, a rise of 7.8%, resulting in an increase of 99 yuan in monthly contributions.
According to China's 14th Five-Year Plan, the minimum contribution period for receiving a pension may be extended. However, no matter what, as long as the contribution period is completed, individuals have more freedom. For example, if the contribution period is extended to 30 years, by the age of 46, individuals actually have the right to choose freely. If one desires a higher pension, they can continue to contribute; if they do not wish to continue participating in the insurance, they can save money to improve their lives.
Especially with our delayed retirement policy, which is voluntary and flexible, as long as the contribution period is long enough, retiring early can also ensure a livelihood.
Thirdly, early participation in social insurance is a form of policy solidification. Currently, our retirement conditions still require a cumulative social insurance contribution of 15 years and reaching the retirement age to retire. In the future, when modifications are made, will there be some consideration for those who have already participated in the insurance? At least, there have been such precedents in the past.
If we participate in social insurance before the retirement age is changed, we may be able to enjoy policy protection. Currently, if the contribution period is less than 15 years, one must continue to contribute upon reaching the retirement age. Only those who have already participated in social insurance and established a personal account before the implementation of the Social Insurance Law, and who still have less than 15 years of contributions even after a 5-year delay, can make a one-time catch-up payment.
Therefore, individuals should participate in social insurance as early as possible based on their actual conditions to effectively prevent future uncertainties. #Top Headline Creation Challenge# #Can I Stop Paying After 15 Years of Social Insurance Contributions#
Many people may still be uncertain about how to arrange their pension funds (employee basic old-age insurance). In fact, with the development of the economy and society, pensions are the greatest support for our lives in old age. It is essential to participate in old-age insurance as early as possible, and it is generally recommended to make contributions for at least over 30 years.
Firstly, I suggest starting to participate in old-age insurance from the age of 16 or 18, in the form of self-employment, so as not to affect studies or the accumulation of contributions. Generally, at the age of 16, one can participate in social insurance as a minor worker, and pension insurance contributions can begin at 16.
Advertisement
Everyone understands that the more you pay into the old-age insurance, the more you get, and the longer you pay, the more you get, which is clearly reflected in the calculation of pensions and the growth of pension benefits.
For example, in the current pension calculation formula we use, the contribution period is directly linked to the average social wage. With a contribution period of 15 years at a 60% tier, one can generally only receive 12% of the average social wage from the previous year upon retirement. If the contribution period reaches 40 years, one can receive 32%. At present, with a contribution period of 40 years, the pension is generally able to receive an amount of 3,000 to 4,000 yuan or more, which is a higher income level than many working young people.
When it comes to the growth of pensions, in addition to fixed adjustments and preferential adjustments, there are also adjustments based on the contribution period and the level of the pension itself. It is hoped that in this year's pension adjustment plan, for Shandong Province, those with contribution periods of less than 15 years, 16 to 25 years, 26 to 35 years, 36 to 45 years, and over 46 years, the basic pension will be increased by 0.8 yuan, 0.9 yuan, 1.0 yuan, 1.1 yuan, and 1.2 yuan per year of contribution, respectively. Moreover, when adjusting according to the proportion of the pension, the increased pension level due to the extended contribution period also plays a role. Therefore, the contribution period is quite "popular" during pension adjustments.
From the perspective of the pension replacement rate, if the average social wage remains unchanged and without considering the interest on the account, a pension replacement rate of 71.43% can be achieved with a 30-year contribution at a 60% base. With a 40-year contribution, the pension replacement rate can even reach over 95%. According to internationally accepted standards, as long as the pension reaches 70% to 80% of the income level before retirement, it can maintain an unchanged lifestyle. Therefore, it is very necessary to plan early.
Secondly, if we can participate in the old-age insurance earlier, on the one hand, it can reduce the future insurance burden, and on the other hand, it can provide more options for ourselves.Based on experience, the earlier one starts to pay into social insurance, the lower the average social wage, and consequently, the less money one has to pay. For instance, this year, the minimum contribution base in Beijing has increased from 6,326 yuan to 6,821 yuan, a rise of 7.8%, resulting in an increase of 99 yuan in monthly contributions.
According to China's 14th Five-Year Plan, the minimum contribution period for receiving a pension may be extended. However, no matter what, as long as the contribution period is completed, individuals have more freedom. For example, if the contribution period is extended to 30 years, by the age of 46, individuals actually have the right to choose freely. If one desires a higher pension, they can continue to contribute; if they do not wish to continue participating in the insurance, they can save money to improve their lives.
Especially with our delayed retirement policy, which is voluntary and flexible, as long as the contribution period is long enough, retiring early can also ensure a livelihood.
Thirdly, early participation in social insurance is a form of policy solidification. Currently, our retirement conditions still require a cumulative social insurance contribution of 15 years and reaching the retirement age to retire. In the future, when modifications are made, will there be some consideration for those who have already participated in the insurance? At least, there have been such precedents in the past.
If we participate in social insurance before the retirement age is changed, we may be able to enjoy policy protection. Currently, if the contribution period is less than 15 years, one must continue to contribute upon reaching the retirement age. Only those who have already participated in social insurance and established a personal account before the implementation of the Social Insurance Law, and who still have less than 15 years of contributions even after a 5-year delay, can make a one-time catch-up payment.
Therefore, individuals should participate in social insurance as early as possible based on their actual conditions to effectively prevent future uncertainties. #Top Headline Creation Challenge# #Can I Stop Paying After 15 Years of Social Insurance Contributions#