For 20 years and above, the pension will be paid at 3886 3 yuan per month, will this work?

Mondo Social Updated on 2024-01-31

The status quo of pension

Population aging: By the end of 2022, the number of elderly people aged 60 and above in China has exceeded 2800 million, accounting for 19 percent of the country's total population8%。It is estimated that by 2035, the number of elderly people aged 60 and above will exceed 400 million, officially entering the stage of severe aging. And this means that the payment pressure of basic pension insurance is greater, and the income is getting less and less.

Huge disparity in pension treatment: Referring to the "2022 Statistical Communiqué on the Development of Human Resources and Social Security" issued by the Ministry of Human Resources, it is roughly estimated that the monthly per capita basic pension level of retired participants in the basic pension insurance for urban employees in 2022 is 3,600 yuanThe monthly per capita pension of the basic old-age insurance for urban and rural residents is only 200 yuan.

There are still defects in the pension system: at this stage, there are two sets of basic old-age insurance systems in parallel in China, namely the old-age insurance for urban workers and the old-age insurance for urban and rural residents, and there are differences between the two in terms of payment methods, payment bases, and guaranteed groups. Moreover, with the adjustment of the basic pension level of retirees year by year, the gap between the pension level of the former and the latter will further widen.

In 2023, the basic pension of retirees will rise for 19 consecutive years

According to the "Notice on Adjusting the Basic Pension of Retirees in 2023" (hereinafter referred to as the "Notice") jointly issued by the Ministry of Human Resources and Social Security and the Ministry of Finance, the basic pension of retirees of enterprises and institutions will achieve "19 consecutive increases" in 2023 Retirees from enterprises and institutions who go through the retirement procedures in accordance with the regulations before December 31, 2022 and apply for receiving the basic pension on a monthly basis can carry out the general adjustment of the pension in accordance with the detailed adjustment plan announced by the local government, and the national adjustment ratio is 38% sure.

Taking Henan as an example, we will continue to adopt three combined adjustment methods, namely quota adjustment, peg adjustment and tilt adjustment, as follows:

Quota adjustment: Retirees within the adjustment range will be increased by 35 yuan per person per month

Linked adjustment: The part of the adjustment linked to the payment period will be increased by 1 per month for every 1 year according to the payment period (including the deemed payment period, excluding the converted length of service).2 yuan (the payment period is less than 1 year, and the payment period is less than 15 years, and the payment period is less than 15 years).The part of the adjustment linked to the basic pension level of the retiree shall be 11 Calculate the increase;

Tilt adjustment: The main object of care is the elderly retirees and retirees in remote areas, as of December 31, 2022, 70 74 years old, each person will receive an additional 25 yuan per month;75 79 years old, an additional 30 yuan per person per month;80 84 years old, an additional 40 yuan per person per month;85 89 years old, an additional 50 yuan per person per month;For those aged 90 and above, an additional 60 yuan per person per month will be issued.

It is worth mentioning that due to factors such as the different levels of economic development in various regions, the different average salary levels of on-the-job employees in the previous year, and the different financial payment capabilities, the detailed adjustment plans of various regions are not uniform, and there will be a certain gap in the numbers. In general, the economically developed provinces will have a higher adjustment rate;In economically underdeveloped areas, the magnitude of adjustment is relatively smaller.

The composition and calculation formula of the pension for retirees

According to the current basic pension system, the basic pension of retirees in enterprises and institutions is generally composed of three parts, namely basic pension, personal account pension and transitional pension. Among them, the amount of the basic pension is related to the calculation and distribution base of the local pension, the individual's payment period and the payment index;The personal account pension is related to the payment base and the payment period;The transitional pension is related to the average salary level of the on-the-job employees in the previous year and the number of years of contribution of the individual before the establishment of the personal account.

Calculation method of basic pension: the average salary of the province's on-the-job post in the previous year (1 + average contribution index) 2 1% of the payment period;(The average monthly salary of on-the-job employees in the previous year, that is, the calculation and payment base of pensions).

Personal account pension = personal account storage amount Number of months

Transitional pension = the average monthly salary of on-the-job employees in the province in the previous year at the time of retirement of the insured person My average contribution index The number of years of payment before I establish a personal account 13% (Fujian).

It should be noted that the calculation method of transitional pension is not uniform in each province, and the specific situation should be subject to the local area. However, no matter how the calculation method changes, the level of the basic pension of retirees will be linked to the payment base and the number of years of payment.

In 2024, the pension will be "20 consecutive increases", and the number of years of service of 20 years and above will be 38863 yuan a month, will it work?

Taking the GDP growth level in 2023, the price increase, the pension security needs of retirees, and the average monthly salary level of on-the-job employees in various places in the previous year as a reference, we can draw a conclusion that the basic pension of retirees in 2024 is likely to be generally adjusted, that is, it will usher in "20 consecutive increases".

According to the data mentioned above in the article, assuming that the monthly per capita pension level of retirees participating in the basic pension insurance for urban employees in 2022 is 3,600 yuan, then after the adjustment in 2023 (3,600*(1+3.).8%)) to 37368 yuan per month;According to the industry's **, the average increase in the basic pension of retirees in 2024 will most likely remain at about 4%, so it can be roughly calculated that the monthly per capita pension of retirees in enterprises and institutions in 2024 will be 3886$3.

So the question is, in 2024, the pension will usher in 20 consecutive rises (high probability), 20 years and above working experience, according to 38863 yuan a month pension, is it feasible?

Let's start with the conclusion: 99% probability of not working, for the following reasons:

Through the pension calculation formula introduced above, we can know that the level of the basic pension of retirees is directly linked to the individual's payment period, in the case of the same amount of contributions, the longer the payment period, the higher the pension level;

In the detailed adjustment plan of the pension, all localities will link the increase in the basic pension with the individual's payment period, the longer the retiree pays, the higher the adjustment range, mainly highlighting the incentive mechanism of overpayment and long-term payment;

Retirees with different occupations, different salaries, and different payment bases belong to different individuals, and the unified payment of basic pensions according to the length of service is contrary to the current basic pension system, and retirees who are higher than this standard will not agree;

If the pension of retirees is divided into different grades according to the length of service, then it will not be able to adjust and compensate in time, which will inevitably reduce the social security level of old-age insurance, which is not conducive to the development of China's old-age security undertakings.

Conclusion

In general, the current basic pension system is linked to factors such as the payment base, the payment period and the pension calculation base in various places, and it is not possible to confirm the amount of pension payment only according to the length of service. Denial will inevitably cause dissatisfaction among some retirees and affect the fairness and justice of the pension system. Therefore, for retirees, if they want to enjoy a higher level of pension, they still have to increase the payment base and extend the payment period as much as possible, only in this way can they receive more and make their later life more secure!Everyone said, isn't that the truth?

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