In China, the traditional social security model is facing the challenges brought about by the acceleration of population aging and social change. In order to cope with these pressures, the introduction of a personal pension system is particularly urgent.
According to the Ministry of Human Resources and Social Security, 36 pilot cities and regions have begun to pilot the personal pension policy, and have achieved positive initial results. So, what exactly is the personal pension system?
The personal pension system is the third pillar of China's social security system, and it is a supplementary pension insurance system with voluntary participation and market-oriented operation.
It aims to provide more pension security options for the insured to meet people's needs for independent planning for retirement.
In addition, the personal pension system also has preferential tax policies, which help to reduce the immediate tax burden of the insured and accumulate sufficient retirement reserves.
At present, 50 million citizens have opened personal pension accounts in 36 pilot cities and regions, which fully proves that the system has won the recognition of the general public.
The advantages of participating in the personal pension system are mainly reflected in three aspects: additional accumulation of security, reasonable arrangement of retirement funds, and preferential tax policies.
So, how to participate in the personal pension system? In fact, you only need to open an account through the national social insurance public service platform or commercial bank channels, and then pay the fee in a voluntary way.
The maximum amount of personal pension that each participant needs to contribute per year shall not exceed 12,000 yuan. After successfully opening an account, participants can choose from a variety of investment options, including savings deposits, wealth management products, commercial pension insurance and public offerings**.
After meeting the conditions for receiving it, participants can receive a personal pension through a designated bank account. Throughout the process, participants can enjoy multiple tax benefits thanks to the implementation of a tax deferral policy.
In the face of the upcoming "silver society", we cannot rely only on traditional pension pillars. The personal pension system is like an "insurance umbrella", giving us more security in today's changing economic environment and increasing pressure on life.
As the third pillar of the comprehensive retirement security system, the personal pension system undoubtedly enhances the soundness and completeness of the system.
In general, whether you are a newcomer to the workplace or a retirement, you have a reason to pay attention to and participate in the personal pension system.
We expect that in the future, the comprehensive old-age security system built based on the three pillars will be more perfect, providing more powerful protection for the retirement life of the general public. Let's welcome a beautiful new chapter of the pension system in 2024!