With the rapid development of China's social economy, the pension insurance system is also constantly improving and adjusting. According to the latest news, China's pension system will usher in major changes in 2024, the most interesting of which is that the length of service will replace the title as the key factor affecting the pension. So, how will this change affect our pensions?In this article, we'll take a look at the top five factors that affect your retirement fund.
1. Length of service. In the upcoming pension reform, seniority will replace job title as the primary factor affecting pensions. This means that regardless of your position, as long as you have worked long enough, your pension will be correspondingly higher. The purpose of this change is to encourage employees to work stably for a long time and improve the stability of social employment.
2. Payment period.
The number of years of pension insurance contribution is also an important factor affecting the retirement pension. According to China's current policy, pension insurance can enjoy pension treatment after 15 years of payment period. However, in the pension reform in 2024, the requirement for the number of years of contribution may be further increased. Therefore, you should try to extend your contribution period as much as possible to obtain a higher pension.
3. Payment base.
The contribution base of pension insurance also affects the calculation of retirement benefits. In general, the higher the contribution base, the higher the pension. In the pension reform in 2024, more people may choose a higher contribution base to increase their pension level.
4. Cumulative amount of personal accounts.
The amount of personal account accumulation is also an important factor affecting retirement benefits. In the pension system, the cumulative amount of personal accounts refers to the total amount of individual contributions and their earnings. The higher the cumulative amount of personal accounts, the higher the retirement pension. Therefore, you should pay attention to the cumulative amount of your personal account and try to increase its value.
5. Retirement age.
The last factor that affects a pension is the retirement age. According to the current policy of our country, the retirement age is 60 years for men and 50 years (for cadres) or 45 years (for workers) for women. In the pension reform in 2024, the retirement age may be adjusted. Everyone should pay attention to policy changes and plan their retirement life reasonably.
Summary: The pension reform in 2024 will make the length of service a key factor affecting the pension, and at the same time, factors such as the number of years of payment, the payment base, the cumulative amount of personal accounts and the retirement age cannot be ignored. In the process of policy adjustment, we should pay attention to the changes in these factors and reasonably plan our pension life. Only by being well prepared can we ensure that we can enjoy a better life in retirement.