With the rapid development of China's social economy and the continuous improvement of the pension insurance system, the pension issue has always attracted the attention of the people.
We all know that the pension gap has always been an urgent problem to be solved. So, what are the factors that will affect the pension gap in 2024?This article will uncover the four reasons behind the pension gap for you
1. Differences in the level of regional economic development.
China's vast land area leads to differences in the level of regional economic development. The eastern coastal region is economically developed, while the central and western regions are relatively lagging behind. This difference directly affects the level of pensions everywhere. According to the latest data, the average pension level of urban workers in 2023 will be 3,300 yuan, but the average pension level in first-tier cities such as Shanghai and Beijing is much higher than the national average, while the pension in some central and western regions is relatively low.
Second, the difference in the nature of occupation and enterprise.
China's pension system mainly includes two types: urban workers' pension insurance and urban and rural residents' pension insurance. The pension insurance for urban workers is paid according to the nature of the enterprise and the level of individual wages, while the pension insurance for urban and rural residents mainly depends on the local finance and the level of residents' contributions. Therefore, there is a certain gap in the level of pensions. According to statistics, the average pension level of urban and rural residents in China in 2023 will be about 1,800 yuan, which is only about half of the average pension level of urban employees.
In addition, there are large differences in the level of pensions for different occupations. Generally speaking, the pension level of employees of government agencies, institutions and enterprises is relatively high, while the pension level of flexible employment personnel, migrant workers and other groups is relatively low. To some extent, this disparity reflects the issue of equity in Chinese society.
Third, the reform of the pension insurance system.
In order to meet the needs of China's social and economic development, the reform of the pension insurance system has been continuously promoted. In 2014, China launched the reform of the pension insurance system of government institutions and institutions, and included the original employees of public institutions into the pension insurance system for enterprise employees. This reform has helped to narrow the pension gap, but there is still a certain imbalance in the short term.
In addition, China is also gradually improving the old-age insurance system for urban and rural residents and raising the level of pensions. For example, in 2021, the state launched an adjustment mechanism for the pension insurance benefits of urban and rural residents, and it is expected that the pension level will gradually increase in the next few years.
Fourth, the degree of population aging.
With the intensification of the global population aging trend, the pressure on pension payments is increasing, and the expenditure of pension insurance is also increasing accordingly. China's elderly population aged 60 and above has reached 25.5 billion, or 18 percent of the total population3%, and the percentage is rising. In this context, China's pension insurance system is facing unprecedented challenges. With the increase in the number of retirees, the pressure on pension payments is also increasing year by year.
Although a number of measures have been taken to ease the pressure on pension payments, these measures may not be enough as the population ages. In order to cope with pension payment pressures, more needs to be done. On the one hand, the income of pension insurance can be increased by increasing the pension insurance rate and extending the retirement age.
On the other hand, the return of pension insurance can be improved by optimizing the pension portfolio and increasing the return on investment. In addition, it is also possible to prevent the abuse and waste of pension insurance by strengthening supervision. At the same time, we also need to recognize that the increase in pension insurance expenditure has affected the level of pension to a certain extent.
Although some measures have been taken to increase pension levels, it may also be necessary to increase pension levels further as pension insurance expenditures increase. Therefore, more measures need to be taken to ensure the living standards of the elderly, such as raising pension standards and strengthening the welfare of the elderly.
Summary: Understanding these four factors that affect the pension gap will help us better grasp the direction of the future pension policy. In the face of the pension gap, we should pay attention to policy dynamics and reasonably plan personal pension security, so as to realize that the elderly have support and dependence.
At the same time, the state should also continue to increase the reform of the pension insurance system, and strive to narrow the pension gap, so that more people can share the fruits of social development.
On this issue, everyone should pay attention to the pension policy, understand their own rights and interests, and actively provide suggestions to jointly promote the continuous improvement of China's pension insurance system. Let's work together to create a better future!