Pension Secrets Is your retirement fund enough?
With the intensification of the aging trend of the population, the pension issue has become the focus of attention of the whole society. Everyone is going to retire, but is your pension enough?In this article, we will reveal the origin, current situation and how to plan for your pension so that you can live out your old age with peace of mind.
i.Pension's**.
China's pension system is mainly divided into three levels: basic pension, enterprise supplementary pension and individual savings pension.
1) Basic pension: fully funded by **, providing basic living security for pensioners. These include the basic pension for urban workers and the basic pension for urban and rural residents.
2) Company supplementary pension: an additional pension paid by the company to employees according to their own profitability. This part of the pension belongs to the company's benefits, which is not mandatory by law.
3) Personal savings pension: including personal commercial pension insurance with tax incentives and personal pension insurance with tax deferral. People can voluntarily participate in a retirement savings plan based on their financial situation.
ii.Pension status.
1) Pension deficit: With the aging of the population, pension expenditures are increasing, while the growth of residents' income is slowing down, resulting in an increase in pension deficit year by year. It is estimated that China's pension deficit will peak in 2035.
2) Decline in pension replacement rate: The pension replacement rate refers to the ratio of pension income after retirement to salary income during employment. In recent years, China's pension replacement rate has continued to decline, which means that the quality of life after retirement may decline.
3) Low return on investment of pensions: At present, China's pension funds mainly invest in fixed income products such as treasury bonds and corporate bonds. In the context of low interest rates, the return on investment of pensions is low, and it is difficult to meet the needs of value preservation and appreciation.
iii - How to plan for old age.
1) Increase the proportion of pension contributions: If salary income allows, try to increase the proportion of individual and collective pension contributions to lay a solid foundation for retirement.
2) Diversified investment: Reasonable allocation of equity products such as ** and other equity products to improve pension investment returns. Under the premise of controllable risks, the value of pensions can be maintained and increased.
3) Plan ahead: The earlier you plan for your pension, the better. Start saving for your pension at a young age and use the compound interest effect to achieve rapid growth in your pension.
4) Purchase of commercial endowment insurance: On the basis of the basic pension, purchase commercial endowment insurance, increase the pension**, and improve the quality of life after retirement.
5) Pay attention to political changes: pay close attention to the adjustment of national pension policies, keep abreast of pension-related policies, and prepare for your own pension planning.
In short: the issue of pensions is an unavoidable issue for everyone. Only by taking precautions and taking reasonable measures can we ensure happiness and well-being in our old age. From now on, let's work hard for pensions!