Since December 1, the annual confirmation of the information on the special additional deduction of individual income tax has begun, and taxpayers who successfully submit the special additional deduction in this month can enjoy the preferential tax reduction and exemption in the following year. According to the data disclosed by the Ministry of Human Resources and Social Security, as of the end of June 2023, the number of people who have opened personal pension accounts has exceeded 40 million.
Personal pension is a supplementary pension insurance system supported by policies, voluntary participation by individuals, and market-oriented operation. As the "third pillar" of China's pension insurance system, the implementation of personal pension not only arouses the thinking and attention of young and middle-aged groups on the issue of pension, enhances the awareness of wealth reserves for the elderly, but also helps guide people to plan their lives from the whole life cycle, and realize the transformation from "being raised" to "preparing for the elderly" and "pension" to "enjoying the old".
Unlike the special additional deduction of provincial tax in the following year, as long as the residents who successfully open a personal pension account and pay the fee before December 31, 2023, can enjoy the tax incentives in 2023. To this end, we have summarized the concerns and misunderstandings about the pre-investment, in-investment, and post-investment of personal pensions, and answered them in three installments.
This issue enters the "Pre-investment Q&A": should I open a personal pension account?
Q1, people with a tax rate of less than 10%, it makes no sense to open a personal pension account?
The Measures for the Implementation of Personal Pensions stipulate that each person can receive a maximum of 1A tax deferral of $20,000. In the year of payment, this 120,000 yuan does not need to pay personal income tax, and when you retire and withdraw your pension, you will pay tax at a rate of 3%. How much tax incentives can I enjoy?It is calculated according to different "taxable income" (i.e. taxable income after deducting the tax threshold and other special additional deductions), and the different results are as follows:
The taxable income does not exceed 360,000 yuan, the tax rate is 3%, and the tax incentive amount for 1 year is 0 yuan.
Taxable income in 360,000 yuan to 1440,000 yuan, the tax rate is 10%, and the tax incentive amount for 1 year is 840 yuan.
Taxable income at 1440,000 yuan to 300,000 yuan, the tax rate is 20%, and the tax incentive amount is 2,040 yuan for 1 year.
If the taxable income is between 300,000 yuan and 420,000 yuan, the tax rate is 25%, and the tax incentive amount for 1 year is 2,640 yuan.
If the taxable income is between 420,000 yuan and 660,000 yuan, the tax rate is 30%, and the tax incentive amount for 1 year is 3,240 yuan.
If the taxable income is between 660,000 yuan and 960,000 yuan, the tax rate is 35%, and the tax incentive amount for one year is 3,840 yuan.
If the taxable income exceeds 960,000 yuan, the tax rate is 45%, and the tax incentive amount for 1 year is 5,040 yuan.
For those who pay 10% to 45% of the individual income tax, they can enjoy real tax benefits, even if they do not consider the time value of money and the possible investment income, they can also benefit from the difference between the two tax rates (7% and 42%).
Even for those who are taxed at a rate of 3%, there are benefits to participating in a personal pension. The first is the time value of money. The same 3% tax is paid, and it is paid now and many years later, but due to inflation, the actual "value" of the same amount of money is not the same;The second is the possible investment income. If you choose to pay it after many years, you can use it to make investments before you pay this part of the tax, and you can expect to earn investment income.
Therefore, people who pay individual income tax at a rate of more than 3% can get the benefits of direct tax reduction and tax deferralPeople with an annual income tax rate of 3% can reap the benefits of tax deferral. Under the existing policy, these two groups of people can enjoy tax incentives to a certain extent when they open personal pension accounts.
Q2, the tax saving is not much, is it necessary to open a personal pension account?
Some investors believe that the annual tax savings of personal pension accounts are not much, and there is no need to bother to open a personal pension account, but this is not the case.
The core of the personal pension account is a supplement to the social security pension, the purpose of which is to increase the pension accumulation channels, to help investors achieve personal pension assets investment appreciation, "tax saving" is not the goal, just icing on the cake.
In China's multi-level old-age security system, the "first pillar" is the basic old-age insurance, which mainly plays a role in ensuring basic lifeThe "second pillar" is the enterprise annuity and occupational annuity, which play a supplementary role for individuals, but the coverage is very small. The introduction of the personal pension system is to meet the people's multi-level and diversified pension security needs, which is conducive to increasing the accumulation of pensions on the basis of basic pension insurance, enterprise annuity and occupational annuity.
Especially for the people who do not participate in the "second pillar", personal pension is an important channel for themselves to supplement the old-age. Open a personal pension account as soon as possible, choose high-quality pension financial products that match your own risk appetite, and accumulate long-term investment, which is expected to enhance a layer of security in your later life.
Q3, it is better to do pension investment by yourself, and you don't need to open a personal pension account
There are two limitations to the pension investment of investors on their own:
First of all, it is not easy to develop scientific investment habits, and it is difficult for ordinary people to achieve "delayed gratification". On the one hand, it is difficult to achieve self-discipline for decades between sticking to investing every month and spending in advanceOn the other hand, because of the impulse to get rich quick, the average person is prone to chasing up and down in the investment process. From this point of view, the personal pension adopts closed account management, and generally does not allow early withdrawal, which is an asset management means of "turning short into long", which is conducive to our formation of good habits of long-term investment.
Secondly, there is a professional threshold for pension investment, and the lack of professional knowledge of ordinary people may lead to the risk of "stepping on thunder", such as being deceived by chasing high returns. In contrast, the investment products of individual pensions are selected and included in the directory by the China Securities Regulatory Commission, which is strongly supervised by the state and operated by a professional investment team, and the overall investment process is more scientific, systematic and effective. For example, ICBC Credit Suisse, the flagship company of the bank, has a full license for pension investment management before the full launch of the personal pension business, and has rich experience in pension investment management and customer service. On November 25, 2022, the personal pension system was launched in a rapid response, and its five personal pension **y shares were the first to be "put on the shelves" for sale in 36 pilot cities across the country. Up to now, it has completed the product layout of six individual pension **y shares, including ICBC 2035Y, 2040Y, 2045Y, 2050Y and ICBC Stable Pension Risk, ICBC Stable Pension Y and ICBC Anyue Stable Pension Target, which hold Y for three years. With its rich product layout and professional investment and research capabilities, ICBC Credit Suisse has gradually become the reassuring choice of many pension investors.
To sum up, personal pensions help to promote the construction of a multi-level and multi-pillar pension insurance system, provide certain tax incentives, and can control the hands of investors to "chase the rise and kill the fall", and help investors make long-term and professional investments. It is recommended that investors actively participate in personal pension accounts when conditions permit, open early, participate early, accumulate early, and strive for early benefits.
Risk Warning: **The word "pension" in the name does not represent income protection or any other form of income commitment, ** does not protect the principal, and losses may occur. The manager manages and uses the property in accordance with the principles of due diligence, honesty and trustworthiness, prudence and diligence, but does not guarantee a certain profit, nor does it guarantee a minimum return. Past performance is not indicative of future performance, and other performance managed by the Manager does not constitute a guarantee of performance. **There are risks, investors should carefully read the "** Contract", "Prospectus", "Product Key Facts Statement" and updates and other legal documents before investing, and choose investment varieties suitable for their own risk tolerance on the basis of a comprehensive understanding of the product situation, rate structure, charging standards of each sales channel and listening to the suitability opinions of the sales agency, and invest cautiously.