Will there be a big difference in pensions between 15 years of retirement and 30
In 2024, the pension has increased again, although the increase is only 3%, it is still a good growth compared to the average 0.2% increase in the Consumer Price Index in 2023. More and more people are recognizing the importance of participating in pension insurance.
Some friends say that the more you pay into pension insurance, the more you get, and the longer you pay, the more you get. Is there a big difference between the pensions for 15 years and 30 years of retirement service? Let's understand the pension calculation formula together.
Taking the pension calculation formula in Hebei Province as an example:
Participating in pension insurance, the basic pension mainly consists of three parts: the basic pension, the personal account pension, and the transitional pension.
① The basic pension part is equal to the 2024 pension payment base in Hebei Province × (1 + the average payment index of the individual) ÷ 2 × the payment duration × 1%.
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Hebei Province's pension payment base in 2023 is 7,122 yuan. According to the experience of previous years, most provinces will announce the payment base for 2024 in November or December. The ultimate goal of the payment base is to transition to the average wage of urban unit employees in the year before retirement.
The average payment index of an individual is the average value of the ratio of the payment base for all payment months (the payment time for calculating the average payment index) to the average monthly wage of the year before the payment. In provinces like Hebei and Shandong, if you pay at the 60% level, the average payment index is 0.6.
For employees who have paid for 15 years, many people generally choose to pay at the 60% level, and the average payment index is 0.6. However, for employees who have paid for 30 years, the payment duration in the past was earlier, and the social average wage was lower, so people's payment levels would also be higher. It is assumed that the average payment index would be 0.8.
From past experience, it is still better to pay pension insurance as early as possible, at least because of the lower social average wage, it is relatively more cost-effective.The average contribution index is 0.6, and with 15 years of contributions, one can receive a pension based on 12% of the pension calculation base. Calculated at 7,122 yuan, the basic pension amount is approximately 855 yuan.
With an average contribution index of 0.8 and 30 years of contributions, one receives 27% of the pension calculation base, resulting in an amount of approximately 1,923 yuan.
② Personal account pension is equal to the balance of the individual's social insurance account ÷ the number of months determined by the retirement age for pension calculation.
Different retirement ages have different calculation months: 195 months for 50 years old, 170 months for 55 years old, and 139 months for 60 years old.
The balance of the individual's social insurance account is credited monthly at 8% of the contribution base, which was generally 11% before 2005. With 15 years of contributions without interruption, from 2009 to 2024, the personal account balance is roughly around 50,000 yuan.
The establishment of the social insurance personal account generally started in January 1996, and the contribution years before that are calculated for transitional pensions. However, due to lower contribution bases in the 1990s, the resulting personal account balances were not substantial. It is estimated that for a worker with a 30-year tenure, the personal account balance would be around 70,000 yuan.
Assuming retirement at the age of 60, with a personal account balance of 50,000 yuan and 70,000 yuan, one can receive a personal account pension of 360 yuan and 500 yuan per month, respectively.
③ Transitional pension, this part is mainly equal to the pension calculation base of the year × the individual's average contribution index × the number of contribution years before account establishment × the transitional coefficient of 1.3%.
Assuming a 30-year work history with 1.5 years before account establishment, and an average contribution index of 0.8, the basic pension is 1.56% of the pension calculation base, and it is estimated that the transitional pension would be 111 yuan.After paying for 15 years, there is generally no transitional pension.
Adding up the three parts of the pension, with 15 years of service, one can receive 1,215 yuan per month, and with 30 years of service, one can receive 2,534 yuan per month.
Additionally, in the event of the policyholder's death, a certain amount of funeral subsidy and consolation money can be received. With 30 years of service, one can receive up to 26 months of the average monthly disposable income of urban residents. With 15 years of service, only 11 months can be received.
After retirement, when the pension is adjusted, it will also be linked to the payment period and the level of the pension. The increase for those with 30 years of service will be greater.
Therefore, it is very necessary to have a longer payment period. For most people, their life after old age will rely entirely on the pension, and it is correct to have a higher amount. #Top Headline Creation Challenge# The difference between a 15-year service pension and a 30-year service pension.
In 2024, the pension has increased again, although the increase is only 3%, it is still a good growth compared to the average 0.2% increase in the Consumer Price Index in 2023. More and more people are recognizing the importance of participating in pension insurance.
Some friends say that the more you pay into pension insurance, the more you get, and the longer you pay, the more you get. Is there a big difference between the pensions for 15 years and 30 years of retirement service? Let's understand the pension calculation formula together.
Taking the pension calculation formula in Hebei Province as an example:
Participating in pension insurance, the basic pension mainly consists of three parts: the basic pension, the personal account pension, and the transitional pension.
① The basic pension part is equal to the 2024 pension payment base in Hebei Province × (1 + the average payment index of the individual) ÷ 2 × the payment duration × 1%.
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Hebei Province's pension payment base in 2023 is 7,122 yuan. According to the experience of previous years, most provinces will announce the payment base for 2024 in November or December. The ultimate goal of the payment base is to transition to the average wage of urban unit employees in the year before retirement.
The average payment index of an individual is the average value of the ratio of the payment base for all payment months (the payment time for calculating the average payment index) to the average monthly wage of the year before the payment. In provinces like Hebei and Shandong, if you pay at the 60% level, the average payment index is 0.6.
For employees who have paid for 15 years, many people generally choose to pay at the 60% level, and the average payment index is 0.6. However, for employees who have paid for 30 years, the payment duration in the past was earlier, and the social average wage was lower, so people's payment levels would also be higher. It is assumed that the average payment index would be 0.8.
From past experience, it is still better to pay pension insurance as early as possible, at least because of the lower social average wage, it is relatively more cost-effective.The average contribution index is 0.6, and with 15 years of contributions, one can receive a pension based on 12% of the pension calculation base. Calculated at 7,122 yuan, the basic pension amount is approximately 855 yuan.
With an average contribution index of 0.8 and 30 years of contributions, one receives 27% of the pension calculation base, resulting in an amount of approximately 1,923 yuan.
② Personal account pension is equal to the balance of the individual's social insurance account ÷ the number of months determined by the retirement age for pension calculation.
Different retirement ages have different calculation months: 195 months for 50 years old, 170 months for 55 years old, and 139 months for 60 years old.
The balance of the individual's social insurance account is credited monthly at 8% of the contribution base, which was generally 11% before 2005. With 15 years of contributions without interruption, from 2009 to 2024, the personal account balance is roughly around 50,000 yuan.
The establishment of the social insurance personal account generally started in January 1996, and the contribution years before that are calculated for transitional pensions. However, due to lower contribution bases in the 1990s, the resulting personal account balances were not substantial. It is estimated that for a worker with a 30-year tenure, the personal account balance would be around 70,000 yuan.
Assuming retirement at the age of 60, with a personal account balance of 50,000 yuan and 70,000 yuan, one can receive a personal account pension of 360 yuan and 500 yuan per month, respectively.
③ Transitional pension, this part is mainly equal to the pension calculation base of the year × the individual's average contribution index × the number of contribution years before account establishment × the transitional coefficient of 1.3%.
Assuming a 30-year work history with 1.5 years before account establishment, and an average contribution index of 0.8, the basic pension is 1.56% of the pension calculation base, and it is estimated that the transitional pension would be 111 yuan.After paying for 15 years, there is generally no transitional pension.
Adding up the three parts of the pension, with 15 years of service, one can receive 1,215 yuan per month, and with 30 years of service, one can receive 2,534 yuan per month.
Additionally, in the event of the policyholder's death, a certain amount of funeral subsidy and consolation money can be received. With 30 years of service, one can receive up to 26 months of the average monthly disposable income of urban residents. With 15 years of service, only 11 months can be received.
After retirement, when the pension is adjusted, it will also be linked to the payment period and the level of the pension. The increase for those with 30 years of service will be greater.
Therefore, it is very necessary to have a longer payment period. For most people, their life after old age will rely entirely on the pension, and it is correct to have a higher amount. #Top Headline Creation Challenge# The difference between a 15-year service pension and a 30-year service pension.