Which is more cost-effective to retire at 50 or 55? Calculate from the perspecti
Indeed, some women are currently facing the choice between retiring at 50 or 55. After all, with improved living conditions and better health, some women have nothing to do after retiring at 50, so they might as well work for a few more years. Between the two retirement ages, which one is more cost-effective? #Which is more cost-effective, retiring at 50 or 55?#
What is the difference in pension between retiring at 50 and 55?
Let's start with some harsh truths: whether one retires at 50 or 55, there will always be some individuals who pass away before they can collect their pensions, making it possible that they will not receive any pension at all. However, even if one does receive a pension, it does not rule out the possibility of passing away. Therefore, we will only consider the amount of the pension calculation and not the issue of whether one can receive the pension.
Advertisement
Step one, let's assume an employee has a contribution period of 30 years, retires at 50, and the current balance in their personal account is 80,000 yuan. If they retire in Shandong Province in 2024, how is the pension calculated?
The pension calculation formula in Shandong Province is a unified approach that combines the basic pension, personal account pension, and transitional pension. For the specific calculation formula, please refer to the figure below:
① Basic pension part:
The pension calculation base for the year of retirement, which was around 7468 yuan in most places last year, is expected to be around 7700 yuan this year.
Contribution period, with a working life of 30 years, it is calculated as 30 years.
The average contribution index of the individual, in the past, was relatively high due to the low social average wage and higher contribution levels. However, in recent years, due to the continuous increase in the contribution base, the contribution level has indeed decreased, which has lowered the average contribution index. Let's assume the average contribution index is 0.8.Upon calculation, the basic pension can be received at 27% of the pension calculation base, resulting in 2079 yuan.
② For the personal account pension part, it is equal to 80,000 yuan divided by 195, resulting in 410 yuan.
③ The transitional pension part mainly refers to the contribution years before the establishment of the personal account. Assuming a calculation period of 1.5 years, one can receive 1.56% of the pension calculation base, resulting in 120 yuan.
Adding up the above three parts, the total pension amount is 2609 yuan.
Next, what is the pension at the age of 55 upon retirement?
① Basic pension.
Retiring 5 years later means an increase of 5 years in the contribution period, assuming the average contribution index remains unchanged. The basic pension can receive an additional 4.5% of the pension calculation base, that is, 31.5% of the pension calculation base.
Regarding the pension calculation base, it will definitely be much higher than now after 5 years. Assuming it can grow by 20%, calculated at 9240 yuan, one can receive 2911 yuan per month (basic pension).
② Personal account pension.Delaying retirement by 5 years means that the individual account will accumulate contributions for an additional 5 years and also accrue interest for an additional 5 years, thus significantly increasing the balance of the individual account. A simple estimate suggests that the individual account balance could reach around 125,000 yuan.
By retiring 5 years later, the number of months for calculating the pension will also change from 195 to 170.
Upon calculation, the pension from the individual account will become 735 yuan.
Transitional pension. Since the contribution period remains fixed, it will not change, and the pension will be uniformly calculated at 1.56% of the pension base, with an estimated result of 144 yuan.
Adding up the three parts, the result is 3,790 yuan.
Step three, if you retire at 50, what will the pension be after a 5-year increase?
The pension increase for retirees in 2024 is only 3%, and future growth rates may not be very optimistic. Assuming that there could be a 15% increase on the pension base over the next 5 years, the pension would increase from 2,609 yuan to 3,000 yuan.
Therefore, by delaying retirement by 5 years, you can receive an additional 790 yuan per month in pension. Moreover, when the pension increases in the future, the increase for those who retire later will be even greater. It is definitely more advantageous to retire later and receive a higher pension. #Top Headline Creation Challenge#
Indeed, some women are currently facing the choice between retiring at 50 or 55. After all, with improved living conditions and better health, some women have nothing to do after retiring at 50, so they might as well work for a few more years. Between the two retirement ages, which one is more cost-effective? #Which is more cost-effective, retiring at 50 or 55?#
What is the difference in pension between retiring at 50 and 55?
Let's start with some harsh truths: whether one retires at 50 or 55, there will always be some individuals who pass away before they can collect their pensions, making it possible that they will not receive any pension at all. However, even if one does receive a pension, it does not rule out the possibility of passing away. Therefore, we will only consider the amount of the pension calculation and not the issue of whether one can receive the pension.
Advertisement
Step one, let's assume an employee has a contribution period of 30 years, retires at 50, and the current balance in their personal account is 80,000 yuan. If they retire in Shandong Province in 2024, how is the pension calculated?
The pension calculation formula in Shandong Province is a unified approach that combines the basic pension, personal account pension, and transitional pension. For the specific calculation formula, please refer to the figure below:
① Basic pension part:
The pension calculation base for the year of retirement, which was around 7468 yuan in most places last year, is expected to be around 7700 yuan this year.
Contribution period, with a working life of 30 years, it is calculated as 30 years.
The average contribution index of the individual, in the past, was relatively high due to the low social average wage and higher contribution levels. However, in recent years, due to the continuous increase in the contribution base, the contribution level has indeed decreased, which has lowered the average contribution index. Let's assume the average contribution index is 0.8.Upon calculation, the basic pension can be received at 27% of the pension calculation base, resulting in 2079 yuan.
② For the personal account pension part, it is equal to 80,000 yuan divided by 195, resulting in 410 yuan.
③ The transitional pension part mainly refers to the contribution years before the establishment of the personal account. Assuming a calculation period of 1.5 years, one can receive 1.56% of the pension calculation base, resulting in 120 yuan.
Adding up the above three parts, the total pension amount is 2609 yuan.
Next, what is the pension at the age of 55 upon retirement?
① Basic pension.
Retiring 5 years later means an increase of 5 years in the contribution period, assuming the average contribution index remains unchanged. The basic pension can receive an additional 4.5% of the pension calculation base, that is, 31.5% of the pension calculation base.
Regarding the pension calculation base, it will definitely be much higher than now after 5 years. Assuming it can grow by 20%, calculated at 9240 yuan, one can receive 2911 yuan per month (basic pension).
② Personal account pension.Delaying retirement by 5 years means that the individual account will accumulate contributions for an additional 5 years and also accrue interest for an additional 5 years, thus significantly increasing the balance of the individual account. A simple estimate suggests that the individual account balance could reach around 125,000 yuan.
By retiring 5 years later, the number of months for calculating the pension will also change from 195 to 170.
Upon calculation, the pension from the individual account will become 735 yuan.
Transitional pension. Since the contribution period remains fixed, it will not change, and the pension will be uniformly calculated at 1.56% of the pension base, with an estimated result of 144 yuan.
Adding up the three parts, the result is 3,790 yuan.
Step three, if you retire at 50, what will the pension be after a 5-year increase?
The pension increase for retirees in 2024 is only 3%, and future growth rates may not be very optimistic. Assuming that there could be a 15% increase on the pension base over the next 5 years, the pension would increase from 2,609 yuan to 3,000 yuan.
Therefore, by delaying retirement by 5 years, you can receive an additional 790 yuan per month in pension. Moreover, when the pension increases in the future, the increase for those who retire later will be even greater. It is definitely more advantageous to retire later and receive a higher pension. #Top Headline Creation Challenge#