The personal pension system, as an important institutional design of the "third pillar" of China's pension insurance system, was officially implemented on November 25, 2022.
Because it can not only be tax-free, but also save money for retirement, it has attracted much attention once it has been launched.
After opening a personal pension account, you can choose from four categories of products: deposit, insurance, and financial management.
However, the only recommended choice is insurance, and there are several reasons: safety and worry, compound interest and value-added, and matching long-term planning.
What we bring today is a personal pension insurance, Fu Linmen launched by Sino-British Life Insurance.
One
Let's take a look at FLM's product details first
1. Underwriting company
Sino-British Life Insurance is oneJoint venture insurance companiesFounded in 2002, it is one of the first batch of approved joint venture insurance companies after China's accession to the WTO. COFCO, a Chinese shareholder, and Aviva Insurance Group, a foreign shareholder, each hold 50% of the shares.
COFCO is a state-owned enterprise directly managed by the State-owned Assets Supervision and Administration Commission (SASAC) and the largest grain, oil and food enterprise in China.
Aviva Group, founded in 1696 and headquartered in London, is:The largest in the UKIt is the world's sixth largest insurance group and the only insurance company designated by the British Crown.
Sino-British Life has been operating steadily and has excellent risk management, and has been rated A for 29 consecutive quarters, which is not an easy achievement.
2. Product related
FLM is insured up to age 69 and can be paid up to age 3 5 10 20 or up to age 55 60 65 70. The age limit for insurance is between 18 and 60 years old, and the corresponding relationship between the starting age of annuity, the age of insurance and the payment period is shown in the following table
The minimum premium requirements are as follows, with a maximum annual premium of 120,000 yuan is a common provision for all personal pension accounts.
The starting age of pension is 60 65 70 years old for men and 55 years old for women.
The rules for receiving pension insurance and the conditions for receiving personal pension accounts just match, which is one of the reasons why I said above that personal pension is the most recommended insurance product.
Personal pension can be simply understood as a bank account, save money in, operate in a closed account in the account, have certain restrictions when using, and can only be withdrawn if the following conditions are met:
At the product functional level, it does not support the addition and subtraction of insurance, and supports policy loans and secondary policyholders.
In addition, FLM has set up two plans, a guaranteed 20-year plan and a guaranteed premium plan. Next, let's calculate how much FLM's different solutions can replenish for our pension.
II
Here is a direct comparison between the two schemes of FLM and the first-echelon traditional annuity in the same field, respectively, with a 40-year-old woman insured and paid 1 per year20,000 yuan, 5 years for example, for calculation.
1. Plan 1: Guaranteed for 20 years
With the same investment of 60,000 yuan, FLM receives 4,740 yuan per year, which is 753 yuan less than the reference group
In addition, at the surrender benefit level, FLM's cash value decreases to zero with the end of the guaranteed benefit period, while the reference group can continue until the age of 85
Looking at the return on surrender (IRR), the gap is intuitively reflected, no matter which age group surrenders, the reference group has a better rate of return.
In the field of guaranteed receipt for 20 years, FLM has a big gap with the first echelon products on the market.
2. Plan 2: Guaranteed premium
Looking at the plan to guarantee the premium, FLM sacrificed all the cash value after receiving the annuity in exchange for an increase of 132 yuan in the annuity, which is a bit more than worth the loss.
Compared with the reference group, FLM annuity receives 1,302 yuan less per year, and the reference group can receive an additional 15 times and 2 times the annuity as a birthday payment, so that the gap is even greater;
Looking at the surrender rate, at the age of 80, 90, 100, FLM has an IRR that is nearly 1% lower than that of the reference group, which is not easy to erase.
To sum up, neither FLM's plan 1 nor plan 2 can be ranked in the first echelon in the current annuity market.
III
Of course, if you choose FLM for tax deductions, it is also a good choice, at least higher than the deposit return, lower than the **, financial risk.
Regarding tax incentives, tax incentives are of little use if they do not reach the tax point or if the income is not higher than 200,000. For middle- or high-income people, it is a good tax deduction and financial management tool.
For example, if your tax point is above 10%, after the money is put into the personal pension account, the tax on retirement withdrawal is 3%, and the difference can indeed save thousands of yuan.
At present, the banks that can be deducted are Everbright, Bank of Communications, and China Merchants Bank, which does not mean that FLM wants to buy from these banks, but just uses the accounts opened by these banks to pay.
Finally, if you want to get a high-quality pension life, social security + personal pension is obviously only the foundation, and it is more important to configure a high-quality commercial pension insurance that meets your needs.