With the reform of China's pension insurance system, the pension merger policy will be officially implemented on October 1, 2024, which will have a significant impact on the majority of retirees. Here, we will analyze the impact of the merger policy on different groups and possible coping strategies.
1. Overview of the pension merger policy.
On October 1, 2014, China issued a pension merger plan, marking the original "dual-track" pension system will gradually transition to a unified pension insurance system.
This reform aims to narrow the gap between pension benefits inside and outside the system and achieve social equity. The merger policy sets a 10-year transition period, which will be officially implemented in October 2024.
Second, the difference in the calculation method of pension before and after the merger.
Before the merger, the pension calculation method inside and outside the system was different, and the pension treatment in the system was generally higher than that outside the system.
Take Xiaoyu as an example, he was admitted to the civil service at the age of 25, and after working for 35 years, he retired at the age of 60 with a monthly salary of 4,000 yuan. The calculation method of the pension before the merger is: basic pension + title subsidy + increased retirement fee. After the merger, the calculation method will be changed to basic account + personal account.
3. The impact of pension after the merger.
After the merger, the calculation of pensions will be more uniform and fair, but at the same time, it may also lead to a reduction in the pension benefits of some personnel.
According to the data, after the merger, the pension may shrink by more than 37%. This is undoubtedly a challenge for some retirees who rely on higher pensions for life.
Fourth, the impact faced by different groups.
Merger policies have different impacts on different groups. The "elderly" (those who retired before October 1, 2014) will follow the old system and will have no impact. The "middle people" (those who retire from October 1, 2014 to September 30, 2024) will face a transition period, and their pension benefits will be calculated according to the combination of the old and new systems. For "newcomers" (those who retire after October 1, 2024), they will calculate their pension in full accordance with the new system.
5. Coping strategies.
In the face of the pension merger policy, how should the majority of retirees respond? First of all, you should keep abreast of policy changes and grasp your pension benefits.
Secondly, you can increase your pension reserves by increasing the number of years of personal payment and increasing the payment base.
In addition, it is important to plan your retirement life reasonably and invest and manage your finances appropriately to ensure the quality of life after retirement.
The implementation of the pension merger policy in 2024 will have a far-reaching impact on the majority of retirees. In this process, we must pay close attention to policy changes and do a good job in personal pension planning to ensure the stability and happiness of retirement life.