A one time payment of 150,000 yuan, a monthly pension of 1,300 yuan, how long can it be returned?

Mondo Social Updated on 2024-01-31

Recently, some netizens asked in a private message that his father will turn 60 in January next year and reach retirement age. However, due to the interruption of social security contributions at a young age, he was unable to enjoy a monthly pension. The social security department has given a possible solution: a one-time payment of a certain amount of fees, so as to restore and enjoy pension benefits.

The total amount of supplementary payment is expected to be about 150,000 yuan, and after the supplementary payment, it is expected to receive a pension of 1,300 yuan per month. This netizen wonders, is such a supplementary payment worth it?

First of all, we need to understand the relevant regulations of social security supplementary contributions. Under normal circumstances, for flexible employees, it is not allowed to make up the payment of social security due to personal reasons. However, for enterprise employees, if the social security payment is interrupted due to the closure of the enterprise or other illegal acts, then the insured individual has the right to apply for a one-time supplementary payment. In addition, if you have reached retirement age but have not paid social security for less than 15 years, then a lump sum payment is usually allowed.

So, in response to this netizen's situation, let's make a simple calculation:

A one-time supplementary payment of 150,000 yuan can receive a pension of about 1,300 yuan per month. If we do not consider the growth factor of the pension, simply multiply 1,300 yuan by 12 months, and we can get the pension that we can receive every year is 15,600 yuan.

Then, the payback time is 150,000 divided by 15,600 yuan per year, which is about 96 years. In other words, it will take about 10 years after retirement for this back-up fee to be repaid.

However, there are several factors that we need to consider:

First of all, with the improvement of China's living standards and the progress of medical technology, China's average life expectancy has reached 754 years old. This means that if the netizen's father can live to be around 75 years old, he can get more than 5 years of additional pension income from this supplementary payment.

Secondly, China's pension is adjusted every year. This means that the amount of pension he receives each month may increase over time. As a result, the payback time may be shorter than the expected 10 years.

Finally, even if he dies after retirement, his family can still enjoy benefits such as the balance of the pension insurance personal account, funeral allowance and survivor's pension.

To sum up, although it takes a while to pay back the principal of a one-time payment of 150,000, it is still worth considering considering factors such as future pension growth, life expectancy and welfare benefits after death. Please note, however, that this is only a general analysis of the one-time catch-up payment, and the specific situation needs to be analyzed and evaluated in detail on an individual basis.

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