How is the flexible employment pension calculated?
With the development of our economy and the aging of the population, more and more people are choosing flexible employment, which means that they must bear all the social security costs themselves. And when it comes to the statutory retirement age, how should the pension be calculated? In this article, we will take a closer look at how to calculate the pension for those who work flexibly, with examples.
i.Overview of the basic pension insurance system.
China's basic pension insurance system consists of individual accounts and pooled accounts. The amount of personal account storage is related to the salary and payment period of the individual, and the overall account is composed of the pension insurance premiums paid by the enterprise. Flexible workers are required to pay contributions to both the individual account and the pooled account.
ii.Calculation of pensions.
Personal account pension Personal account pension = personal account savings The number of months of payment, where the number of months of payment is related to the retirement age, for example, 50 months for retirement at age 190, and retirement at age 60 for 139 months.
Pooled account pension Pooled account pension = pooled account savings Payment period Pooled account savings are related to individual salary, contribution rate and contribution period.
iii.Suppose a male flexible worker retires at the age of 55 with a personal account reserve of 50,000 and a coordinated account reserve of 100,000 and a contribution period of 20 years. How is his pension calculated?
Personal account pension = 50,000 170 = 294 yuan per month, the number of accumulation months is 170 months, and retirement at the age of 55.
Pension in the overall account = 100,000 20 = 500 yuan per month, and the payment period is 20 years.
Therefore, the pension for those who are flexibly employed is: 294 + 500 = 794 months.
iv.Factors influencing retirement benefits.
Personal contribution salary: The higher the individual contribution salary, the more savings in the personal account and the higher the pension.
Membership years: The longer the membership period, the more savings in the coordination account, and the higher the pension.
b) Contribution rate: The higher the contribution rate, the more savings in the individual account and the pooled account, and the higher the pension.
Retirement age: The higher the retirement age, the less months of accumulation, and the higher the personal account pension.
v.Suggested action:
In order to increase the level of pensions for people in flexible employment, we can take the following measures.
Increase the contribution wage: Flexible employees can choose the appropriate contribution salary according to their own economic situation and increase the amount of personal account savings.
Extended contribution period: Workers with flexible employment can extend the contribution period as long as possible to increase the savings in the coordination account.
Choose the right contribution rate: Flexible workers can choose the right contribution rate according to their financial situation and pension needs.
Late retirement age: Flexible workers can postpone the retirement age as much as possible to reduce the number of months of accumulation and increase their personal account pension.