In September, 30 years of service can be retired early. Is it more appropriate t
Today, I just received a consultation from a friend: "Hello teacher, I would like to ask, I will have 30 years of work experience in September and can apply for retirement. Should I retire before or after October?"
In October 2024, there is a very important change, which is the end of the ten-year transitional period for government and public institutions. This marks the complete exit of the old retirement benefits system for these institutions from the historical stage. However, the end of the transitional period will not have a significant impact on the majority of people.
The old method of retirement benefits for government and public institutions.
During the ten-year transitional period, if the retirement benefits under the old method are higher, the pension will be paid according to the old method.
The old method of retirement benefits mainly refers to the comprehensive calculation based on factors such as the retirement fee payment ratio determined by the length of service, the basic salary in September 2014, retirement living allowance, the fixed increase in retirement fees in 2015, and the wage growth rate thereafter.
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Since the salary design in September 2014 did not take into account the payment of pension insurance and occupational annuity, the corresponding standards were very low. The wage growth rate from 2016 to 2024 was also not high, generally around 2% in recent years. Overall, the old method of retirement benefits is usually around three to four thousand yuan or five to six thousand yuan. It is rare to exceed 6,000 yuan.
How is the new method of retirement benefits calculated?
In fact, retiring in 2024, as long as the new method of retirement benefits is higher, the retirement benefits will be paid according to the new method. The new method of retirement benefits mainly includes two parts: the basic pension and the occupational annuity. The basic pension includes three parts: the basic pension, the personal account pension, and the transitional pension.① The basic pension is equal to the pension payment base of the year of retirement × (1 + the average contribution index of the individual) ÷ 2 × the number of contribution years × 1%.
The contribution index for government and public institution employees includes both the actual contribution index and the deemed contribution index.
Generally speaking, the final average contribution index will be above 1.0. For example, those at the level of section chief and above can generally reach 1.2 to 1.4.
Assuming an average contribution index of 1.4 and 30 years of service, one can receive a pension of 36% of the calculation base.
For instance, Shandong Province's pension payment base last year was 7,468 yuan, and this year it is expected to reach over 7,700 yuan, with the basic pension part estimated to be over 2,770 yuan.
② Both the personal account pension and the occupational annuity are equal to the balance of the personal account at the time of retirement divided by the number of months determined by the retirement age.
The balance of the personal account can now be checked through the social security system and the occupational annuity system.
The number of months determined by the retirement age is uniformly stipulated by the state: 195 months for 50 years old, 170 months for 55 years old, and 139 months for 60 years old. The later one retires, the smaller the number of payment months, resulting in a higher calculated pension and occupational annuity.
However, there is a disadvantage to retiring later, which is that the number of payment months for the individual account of the pension insurance may face revision. After all, the premise of the introduction of the number of payment months was the urban life expectancy in 2000, and it has been in effect for 20 years, so it is indeed time for improvement. According to the 14th Five-Year Plan, there should be a definitive answer before 2025.③ The transitional pension is equal to the pension calculation base × the individual's deemed contribution index × the individual's deemed contribution years × the transitional coefficient.
The transitional coefficient is determined by each province itself, generally consistent with the transitional coefficient of enterprises, and ranges between 1.0% and 1.4%.
Generally speaking, the deemed contribution index and deemed contribution years for the transitional pension part will not change, but the later one retires, the higher the pension calculation base.
From the above situation, it can be seen that as long as one pays an additional month of social insurance, the pension can be increased by a certain amount. The later one retires, the more accumulated personal accounts for pension insurance and occupational annuity, the longer the contribution years, and the pension will definitely increase. Moreover, for government and public institutions, the treatment after retirement will definitely not be as good as the treatment during employment (including housing provident fund, various subsidies, etc.).
Therefore, from an economic perspective, it is definitely better to retire later. However, if considering personal freedom, life is only once, and under the condition of not much economic pressure, having more free time is better. #Headline Creation Challenge# #Pension Calculation#
Today, I just received a consultation from a friend: "Hello teacher, I would like to ask, I will have 30 years of work experience in September and can apply for retirement. Should I retire before or after October?"
In October 2024, there is a very important change, which is the end of the ten-year transitional period for government and public institutions. This marks the complete exit of the old retirement benefits system for these institutions from the historical stage. However, the end of the transitional period will not have a significant impact on the majority of people.
The old method of retirement benefits for government and public institutions.
During the ten-year transitional period, if the retirement benefits under the old method are higher, the pension will be paid according to the old method.
The old method of retirement benefits mainly refers to the comprehensive calculation based on factors such as the retirement fee payment ratio determined by the length of service, the basic salary in September 2014, retirement living allowance, the fixed increase in retirement fees in 2015, and the wage growth rate thereafter.
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Since the salary design in September 2014 did not take into account the payment of pension insurance and occupational annuity, the corresponding standards were very low. The wage growth rate from 2016 to 2024 was also not high, generally around 2% in recent years. Overall, the old method of retirement benefits is usually around three to four thousand yuan or five to six thousand yuan. It is rare to exceed 6,000 yuan.
How is the new method of retirement benefits calculated?
In fact, retiring in 2024, as long as the new method of retirement benefits is higher, the retirement benefits will be paid according to the new method. The new method of retirement benefits mainly includes two parts: the basic pension and the occupational annuity. The basic pension includes three parts: the basic pension, the personal account pension, and the transitional pension.① The basic pension is equal to the pension payment base of the year of retirement × (1 + the average contribution index of the individual) ÷ 2 × the number of contribution years × 1%.
The contribution index for government and public institution employees includes both the actual contribution index and the deemed contribution index.
Generally speaking, the final average contribution index will be above 1.0. For example, those at the level of section chief and above can generally reach 1.2 to 1.4.
Assuming an average contribution index of 1.4 and 30 years of service, one can receive a pension of 36% of the calculation base.
For instance, Shandong Province's pension payment base last year was 7,468 yuan, and this year it is expected to reach over 7,700 yuan, with the basic pension part estimated to be over 2,770 yuan.
② Both the personal account pension and the occupational annuity are equal to the balance of the personal account at the time of retirement divided by the number of months determined by the retirement age.
The balance of the personal account can now be checked through the social security system and the occupational annuity system.
The number of months determined by the retirement age is uniformly stipulated by the state: 195 months for 50 years old, 170 months for 55 years old, and 139 months for 60 years old. The later one retires, the smaller the number of payment months, resulting in a higher calculated pension and occupational annuity.
However, there is a disadvantage to retiring later, which is that the number of payment months for the individual account of the pension insurance may face revision. After all, the premise of the introduction of the number of payment months was the urban life expectancy in 2000, and it has been in effect for 20 years, so it is indeed time for improvement. According to the 14th Five-Year Plan, there should be a definitive answer before 2025.③ The transitional pension is equal to the pension calculation base × the individual's deemed contribution index × the individual's deemed contribution years × the transitional coefficient.
The transitional coefficient is determined by each province itself, generally consistent with the transitional coefficient of enterprises, and ranges between 1.0% and 1.4%.
Generally speaking, the deemed contribution index and deemed contribution years for the transitional pension part will not change, but the later one retires, the higher the pension calculation base.
From the above situation, it can be seen that as long as one pays an additional month of social insurance, the pension can be increased by a certain amount. The later one retires, the more accumulated personal accounts for pension insurance and occupational annuity, the longer the contribution years, and the pension will definitely increase. Moreover, for government and public institutions, the treatment after retirement will definitely not be as good as the treatment during employment (including housing provident fund, various subsidies, etc.).
Therefore, from an economic perspective, it is definitely better to retire later. However, if considering personal freedom, life is only once, and under the condition of not much economic pressure, having more free time is better. #Headline Creation Challenge# #Pension Calculation#