With a social security balance of 6 trillion, is your retirement pension still enough?

Mondo Social Updated on 2024-02-02

Recently, the National Bureau of Statistics released data on social security income and expenditure in 2023, showing that the total income of social security** is 78 trillion yuan, with a total expenditure of 72 trillion yuan, with a balance of 06 trillion yuan, with a cumulative balance of 61 trillion yuan. This data may seem huge, but can it really protect our pensions? Is our pension still enough?

In fact, this data is not optimistic, because it includes five major social insurance**, namely endowment insurance, medical insurance, unemployment insurance, work-related injury insurance and maternity insurance, and the most important of which endowment insurance** is facing great pressure. According to the data, the income of pension insurance in 2023 will be 49 trillion yuan, with an expenditure of 48 trillion yuan, with a balance of 01 trillion yuan, with a cumulative balance of 43 trillion yuan. This balance is equivalent to only 10 of expenditures4%, and it is decreasing year by year, with a deficit expected by 2025 and depleted by 2035.

Why is there such a problem in pension insurance? There are several main reasons:

Population aging**: With the decline of fertility rate and the extension of life expectancy, China's population structure has changed, the proportion of the elderly population is getting higher and higher, and the proportion of the labor force population is getting lower and lower, resulting in fewer and fewer contributors to pension insurance, and more and more recipients, forming an "upside-down" phenomenon, making the income and expenditure of pension insurance unbalanced.

The payment rate is not high**: Although China's pension insurance system has covered all urban workers and rural residents, due to the different bases, proportions and durations of contributions, as well as the existence of some gray areas, many people's payment level is not high, and even some people do not pay at all, or avoid payment, making the income of pension insurance insufficient.

The level of treatment is not low**: Although the level of treatment of China's pension insurance is not high, due to the slowdown of China's economic growth, as well as the impact of prices and inflation, the growth rate of pension insurance expenditure is higher than the income growth rate, which makes the expenditure pressure of pension insurance continue to increase.

How do we deal with such a problem? Is there something we can do to make our pension more sustainable and our retirement fund more adequate? Below, I will share some suggestions with you, and maybe you have similar thoughts.

1.*Increase the contribution rate**: This is the most direct way, which is to increase the income of pension insurance and relieve the pressure of pension insurance by increasing the base, proportion and duration of payment. For example, the upper and lower limits of payment can be appropriately raised, the scope of payment can be expanded, the supervision of payment can be strengthened, the evasion of payment can be cracked down, and voluntary payment can be encouraged, and so on. In this way, more people can participate in the pension insurance system, increase the capital pool of pension insurance, and improve the level of pension insurance.

2.*Reduce the level of treatment**: This is the most painful way, which is to reduce the expenditure of pension insurance and balance the income and expenditure of pension insurance by reducing the base, proportion and duration of receipt. For example, the retirement age can be appropriately raised, the period of receipt can be extended, the standard of receipt can be adjusted, and differential treatment can be implemented. In this way, the expenditure of pension insurance can be matched with income, avoid the deficit of pension insurance, and maintain the operation of pension insurance.

3.*Increase investment income**: This is the most effective way to obtain higher returns, increase the income of pension insurance, and enhance the strength of pension insurance by investing in the balance of pension insurance. For example, we can appropriately open up the investment channels of pension insurance, expand the investment scope of pension insurance, improve the investment efficiency of pension insurance, and so on. In this way, the funds of endowment insurance can no longer be idle, but play a greater role and provide more support for the development of endowment insurance.

Through this article, do you have more understanding and thinking about the social security balance of 6 trillion yuan and the issue of pension insurance? Do you also want to know, in addition to pension insurance, what other ways can provide security for our retirement life? Welcome to leave a message in the comment area and join me with your views and suggestions. Perhaps, we can all find some inspiration and motivation from it to make our future more secure and brighter.

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