What's the matter with 195 in the pension calculation? How did it come from? Wha
Many retirees in 2024 found a number on their pension approval forms - 195. What is the story behind this number? How is it calculated?
The number 195 is a value used in the calculation of the personal account pension for those who retire at the age of 50, regardless of gender. By dividing the balance of the individual's social insurance personal account by 195, one can determine the monthly pension amount from the personal account for the retiree.
We generally refer to this number as the monthly payment period for the personal account pension for those retiring at 50 years old.
However, it is important not to misunderstand that this means receiving 1/195 of the personal account's pension insurance each month, and that after 195 months, the personal account or pension will be exhausted.
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The personal account pension is calculated based on the balance of the personal account at the time of retirement. A portion of the personal account pension is paid out each month, and the remaining balance earns interest annually at a rate published by the state for the social insurance personal account.
An additional piece of knowledge is that since 2016, the interest rate for the social insurance personal account has been announced annually by the Ministry of Human Resources and Social Security and the Ministry of Finance. From 2016 to 2022, for seven consecutive years, this rate has been as high as 6% to 8% or more. This interest rate is much higher than that of bank deposits.
Furthermore, it is important to note that the monthly payment from the social insurance personal account is not fixed forever. In the pension adjustment plan for retirees in 2024, many provinces emphasized that the expenditure limit of the social insurance personal account should be increased in proportion to the adjustment of the individual's pension. For example, if the original monthly payment of the personal account pension was 500 yuan, and my pension increase this year is 4% (although the average level is 3%), the monthly payment will become 520 yuan.After the balance of the individual account for the endowment insurance is exhausted, the state will use the consolidated account to pay for the individual account pension benefits, ensuring that the benefits for retired elderly do not decrease and will gradually increase.
How is the calculation of the individual account's monthly payment period determined?
The monthly payment period for the individual account of the endowment insurance was established and announced in 2005. Before 2005, it was uniformly set at 120 months. From the age of 40 to 70, each age has a corresponding monthly payment period. At the age of 40, it is 233 months, at 70 it is 56 months, at 60 it is 139 months, and at 55 it is 170 months. Generally speaking, after exceeding the age, the monthly payment period of the next year is used to calculate the pension.
The monthly payment period for the individual account of the endowment insurance is calculated through the following complex index calculation formula.
The premise of the index calculation formula is to aim for an average life expectancy of 75 years, under the condition that the interest rate of the individual account of the endowment insurance remains at 4%, and the pension remains unchanged, we can calculate that the monthly payment period for retirement at the age of 50 is 194.9636, which is rounded to 195.
The retirement system is indeed in need of revision in the future. After all, with the development of economic society and the improvement of medical technology, people's life expectancy has been continuously increasing over the years. In 2000, the average life expectancy of urban and rural residents in our country was 71.4 years (urban residents was 75.21 years), but by 2022, the average life expectancy had reached 78.2 years.
Since 2005, the pensions of retired personnel in our country have been adjusted annually, especially from 2008 to 2015, maintaining a 10% annual growth rate. In this case, the expenditure of the individual account will continue to increase, which has deviated from the purpose of establishing the monthly payment period.
According to the 14th Five-Year Plan for the development of human resources and social security, our country will improve the system of monthly payment periods for the individual accounts of the endowment insurance, and it is expected that a conclusion will be reached before 2025. #Headline Creation Challenge# #Pension Knowledge#
Many retirees in 2024 found a number on their pension approval forms - 195. What is the story behind this number? How is it calculated?
The number 195 is a value used in the calculation of the personal account pension for those who retire at the age of 50, regardless of gender. By dividing the balance of the individual's social insurance personal account by 195, one can determine the monthly pension amount from the personal account for the retiree.
We generally refer to this number as the monthly payment period for the personal account pension for those retiring at 50 years old.
However, it is important not to misunderstand that this means receiving 1/195 of the personal account's pension insurance each month, and that after 195 months, the personal account or pension will be exhausted.
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The personal account pension is calculated based on the balance of the personal account at the time of retirement. A portion of the personal account pension is paid out each month, and the remaining balance earns interest annually at a rate published by the state for the social insurance personal account.
An additional piece of knowledge is that since 2016, the interest rate for the social insurance personal account has been announced annually by the Ministry of Human Resources and Social Security and the Ministry of Finance. From 2016 to 2022, for seven consecutive years, this rate has been as high as 6% to 8% or more. This interest rate is much higher than that of bank deposits.
Furthermore, it is important to note that the monthly payment from the social insurance personal account is not fixed forever. In the pension adjustment plan for retirees in 2024, many provinces emphasized that the expenditure limit of the social insurance personal account should be increased in proportion to the adjustment of the individual's pension. For example, if the original monthly payment of the personal account pension was 500 yuan, and my pension increase this year is 4% (although the average level is 3%), the monthly payment will become 520 yuan.After the balance of the individual account for the endowment insurance is exhausted, the state will use the consolidated account to pay for the individual account pension benefits, ensuring that the benefits for retired elderly do not decrease and will gradually increase.
How is the calculation of the individual account's monthly payment period determined?
The monthly payment period for the individual account of the endowment insurance was established and announced in 2005. Before 2005, it was uniformly set at 120 months. From the age of 40 to 70, each age has a corresponding monthly payment period. At the age of 40, it is 233 months, at 70 it is 56 months, at 60 it is 139 months, and at 55 it is 170 months. Generally speaking, after exceeding the age, the monthly payment period of the next year is used to calculate the pension.
The monthly payment period for the individual account of the endowment insurance is calculated through the following complex index calculation formula.
The premise of the index calculation formula is to aim for an average life expectancy of 75 years, under the condition that the interest rate of the individual account of the endowment insurance remains at 4%, and the pension remains unchanged, we can calculate that the monthly payment period for retirement at the age of 50 is 194.9636, which is rounded to 195.
The retirement system is indeed in need of revision in the future. After all, with the development of economic society and the improvement of medical technology, people's life expectancy has been continuously increasing over the years. In 2000, the average life expectancy of urban and rural residents in our country was 71.4 years (urban residents was 75.21 years), but by 2022, the average life expectancy had reached 78.2 years.
Since 2005, the pensions of retired personnel in our country have been adjusted annually, especially from 2008 to 2015, maintaining a 10% annual growth rate. In this case, the expenditure of the individual account will continue to increase, which has deviated from the purpose of establishing the monthly payment period.
According to the 14th Five-Year Plan for the development of human resources and social security, our country will improve the system of monthly payment periods for the individual accounts of the endowment insurance, and it is expected that a conclusion will be reached before 2025. #Headline Creation Challenge# #Pension Knowledge#