Retire early, will you receive less pension or more pension? Look at the differe
Regarding retirement, there is one thing many people want to understand: if we retire early, will we receive less pension or more? If retiring early means receiving more pension, people would certainly not want to retire late. Let's calculate based on the pension formula.
Let's take the United States as an example first.
In the United States, the retirement pension follows a proportional reduction model for early retirement. For each month of early retirement, the basic pension is reduced by 1% multiplied by 5/9. That is to say, if one retires three years early, the pension will only be paid at 80%.
The calculation of pensions in the United States is also quite distinctive. There are two turning points for the pension: 90% of the amount below the lower turning point is paid, 32% of the amount between the two turning points is paid, and 15% of the amount above the higher turning point is paid.
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Assuming the indexed monthly income is $5,000, with the first and second turning points being $1,000 and $4,000 respectively, the actual standard pension would be $2,010. If one retires three years early, the monthly payment would only be $1,608.
According to the life expectancy table in the United States, if one retires at 66, the remaining life expectancy for men is 17.03 years. If retiring at 63, the remaining life expectancy for men would be 19.22 years. It is clear that the earlier one retires, the longer the period of receiving the pension.
However, with the pension amount remaining unchanged, if one retires at 63 and receives $1,608 per month, the total amount receivable during the expected lifespan would be $370,900. What if one retires at 66? The result is that one could receive $410,700.
In terms of pension income, it is definitely more cost-effective to retire later, not only because the total amount of pension received is higher, but also because the higher the monthly income, the higher the standard of living.What is the situation in China?
The pension generated from participating in the pension insurance mainly consists of two parts: the basic pension and the personal account pension. Some groups also have a transitional pension, which is mainly for the treatment connection before the establishment of the personal account, and will not be considered here.
The calculation formula for the basic pension and the personal account pension is unified nationwide, so there will not be much difference.
Take the most typical example, according to the lowest base payment for 15 years, how much pension can be received?
Assuming the local social average wage is 7,500 yuan, and the payment base is also 7,500 yuan, how much pension can be received by paying at the 60% level for 15 years?
① The basic pension part is 12% of the pension payment base, resulting in 900 yuan per month.
② The personal account pension part, the balance of the personal account pension insurance can accumulate after paying for 15 years: 7,500 yuan × 60% × 8% × 12 months × 15 years = 64,800 yuan.
Assuming retirement at the age of 50, the payment months are 195, and the personal account pension per month is 332 yuan.
If retiring at the age of 55, the payment months are 170, and the personal account pension per month is 381 yuan.In summary, the basic pension amounts are 1,232 yuan and 1,281 yuan, respectively.
Our early retirement does not make a significant difference in the pension. If voluntary early retirement is promoted in the future, it is estimated that a certain proportion of the basic pension and transitional pension might be reduced.
Using the same life expectancy table as mentioned above, the life expectancy at age 50 is 29.58 years, and at age 55, it is 25.41 years.
If one retires at 50, the total pension receivable would be 1,232 yuan × 12 months × 29.58 years = 437,300 yuan.
If one retires at 55, the total pension receivable would be 1,281 yuan × 12 months × 25.41 years = 390,600 yuan.
By comparison, it can be seen that our current pension model encourages earlier retirement.
Our pension model originated in the early days of the country when wages were low. At that time, the state also managed young people's employment positions, trying to allow older people to retire early and free up job positions.
Therefore, the state will certainly improve our retirement system in the next step, allowing those who voluntarily choose to delay retirement to benefit more. #Top Headline Creation Challenge# #Is Early Retirement Good or Late Retirement Good?#
Regarding retirement, there is one thing many people want to understand: if we retire early, will we receive less pension or more? If retiring early means receiving more pension, people would certainly not want to retire late. Let's calculate based on the pension formula.
Let's take the United States as an example first.
In the United States, the retirement pension follows a proportional reduction model for early retirement. For each month of early retirement, the basic pension is reduced by 1% multiplied by 5/9. That is to say, if one retires three years early, the pension will only be paid at 80%.
The calculation of pensions in the United States is also quite distinctive. There are two turning points for the pension: 90% of the amount below the lower turning point is paid, 32% of the amount between the two turning points is paid, and 15% of the amount above the higher turning point is paid.
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Assuming the indexed monthly income is $5,000, with the first and second turning points being $1,000 and $4,000 respectively, the actual standard pension would be $2,010. If one retires three years early, the monthly payment would only be $1,608.
According to the life expectancy table in the United States, if one retires at 66, the remaining life expectancy for men is 17.03 years. If retiring at 63, the remaining life expectancy for men would be 19.22 years. It is clear that the earlier one retires, the longer the period of receiving the pension.
However, with the pension amount remaining unchanged, if one retires at 63 and receives $1,608 per month, the total amount receivable during the expected lifespan would be $370,900. What if one retires at 66? The result is that one could receive $410,700.
In terms of pension income, it is definitely more cost-effective to retire later, not only because the total amount of pension received is higher, but also because the higher the monthly income, the higher the standard of living.What is the situation in China?
The pension generated from participating in the pension insurance mainly consists of two parts: the basic pension and the personal account pension. Some groups also have a transitional pension, which is mainly for the treatment connection before the establishment of the personal account, and will not be considered here.
The calculation formula for the basic pension and the personal account pension is unified nationwide, so there will not be much difference.
Take the most typical example, according to the lowest base payment for 15 years, how much pension can be received?
Assuming the local social average wage is 7,500 yuan, and the payment base is also 7,500 yuan, how much pension can be received by paying at the 60% level for 15 years?
① The basic pension part is 12% of the pension payment base, resulting in 900 yuan per month.
② The personal account pension part, the balance of the personal account pension insurance can accumulate after paying for 15 years: 7,500 yuan × 60% × 8% × 12 months × 15 years = 64,800 yuan.
Assuming retirement at the age of 50, the payment months are 195, and the personal account pension per month is 332 yuan.
If retiring at the age of 55, the payment months are 170, and the personal account pension per month is 381 yuan.In summary, the basic pension amounts are 1,232 yuan and 1,281 yuan, respectively.
Our early retirement does not make a significant difference in the pension. If voluntary early retirement is promoted in the future, it is estimated that a certain proportion of the basic pension and transitional pension might be reduced.
Using the same life expectancy table as mentioned above, the life expectancy at age 50 is 29.58 years, and at age 55, it is 25.41 years.
If one retires at 50, the total pension receivable would be 1,232 yuan × 12 months × 29.58 years = 437,300 yuan.
If one retires at 55, the total pension receivable would be 1,281 yuan × 12 months × 25.41 years = 390,600 yuan.
By comparison, it can be seen that our current pension model encourages earlier retirement.
Our pension model originated in the early days of the country when wages were low. At that time, the state also managed young people's employment positions, trying to allow older people to retire early and free up job positions.
Therefore, the state will certainly improve our retirement system in the next step, allowing those who voluntarily choose to delay retirement to benefit more. #Top Headline Creation Challenge# #Is Early Retirement Good or Late Retirement Good?#