With the gradual advancement of the pension system, China is moving towards a fairer and more perfect old-age security system. For those born between 1954 and 1974, this news means that they will have the opportunity to enjoy a more reasonable pension package. So, how will this institutional change affect their retirement?This article will explain it in detail for you.
Contribution period and payment base: fairness and transparency.
In the past, under the dual-track system, there were significant differences in the pension payment period and payment base of enterprises and government institutions. This means that people born between 1954 and 1974 may have experienced different pension systems during their careers. However, with the implementation of the merger system, this unfairness will gradually disappear.
Under the new pension system, the number of years of contribution and the contribution base of all participants will be measured uniformly and fairly. This means that those who invest more in their careers will receive a higher pension package when they retire. At the same time, it also provides an opportunity for those who may not have been fully invested in their early careers to improve their treatment.
Personal Accounts: Continuity & Growth.
Under the dual-track system, there is a difference between the personal accounts of retirees of enterprises and the personal accounts of retirees of government agencies and institutions. However, with the implementation of the merger system, this difference will gradually disappear.
The new pension system will establish a unified system of personal accounts, so that the personal rights and interests of all participants can be fairly recorded and grown. This means that those who invest more in their careers will have more personal account balances in retirement. In addition, over time, the balance of personal accounts will also receive a moderate increase in order to safeguard the quality of life of the elderly.
Future outlook: continuous improvement and adaptation to change.
With the end of the pension merger system, the future pension security system will be more fair and unified. For those born between 1954 and 1974, their pension benefits will be gradually improved.
China will continue to promote the reform of the pension system to better adapt to the growing aging population and the changing socio-economic environment. This means that the pension system of the future will be more focused on fairness, sustainability and adaptability.
In short, for those born between 1954 and 1974, the end of the pension consolidation system means that their pension benefits will usher in a major change. Through a fairer system of contribution years, contribution bases and personal accounts, their retirement life will be better protected and improved. At the same time, it is also expected that China's future pension system can continue to adapt to the changing socio-economic environment in the reform, and provide more stable and high-quality old-age security for the elderly.