As the older generation gradually reaches retirement age, China is about to usher in a wave of retirement.
According to **, by 2024, the number of new retirees in our country will reach more than 27 million, much higher than in 2022.
This poses a huge challenge to China's social security system, and also worries many people who are about to retire: will it be reduced because of the increase in the number of retirees? How do I calculate my superannuation income?
In order to answer these questions, this article will give you a detailed introduction to the calculation formula, methods and cases of pensions in China, so that you can understand how your pension is calculated and how much pension you can expect to receive.
An introduction to the pension calculation formula
China's pension is composed of three parts, namely the basic pension, personal account pension and transitional pension.
The calculation formula of these three parts is formulated in accordance with laws and regulations such as the Social Insurance Law and the Reform Plan for the Basic Pension Insurance System for Enterprise Employees.
However, due to the differences in the economic development level, population structure and pension insurance system of each province, each province has different specific calculation formulas.
Basic pension
The basic pension refers to the pension calculated according to the average monthly salary of the province's on-the-job workers in the previous year, the average individual contribution index and the number of years of payment, and is the main part of the pension. It is calculated as follows:
Basic pension = the average monthly salary of on-the-job employees in the province in the previous year (1 + average contribution index) 2 1% of the payment period
Personal account pension
Personal account pension refers to the pension calculated according to the amount of personal account savings and the number of months corresponding to the retirement age, which is an auxiliary part of the pension. It is calculated as follows:
Personal account pension = personal account savings The number of months corresponding to the retirement agePersonal account pension = personal account savings The number of months corresponding to the retirement age
Among them, the deposit amount of personal account refers to the part of the basic endowment insurance premiums paid by individuals and units that are transferred to personal accounts, and the interest is calculated and accumulated at a certain interest rate.
The number of months corresponding to the retirement age refers to the number of months of pension calculation and payment determined according to the individual's retirement age, which is generally 139 months, that is, 11 years and 7 months.
Transitional pensions
The transitional pension is a kind of pension established to ensure the pension level of employees who participated in the work before 1997, and is a supplementary part of the pension. It is calculated as follows:
Transitional pension = the payment period of the transitional pension Transitional coefficient Average contribution index Pension calculation base.
Case Study
Taking 2023 as an example, let's assume that the average monthly wage of on-the-job employees in Shandong Province in the previous year was 8,000 yuan.
Mr. Zhang, who started working in 1983 and retired in 2023, has a retirement age of 60 years old, a contribution period of 40 years, a personal contribution salary of 6,000 yuan, and a personal account storage amount of 300,000 yuan. Well, his pension income is:
The average individual contribution index is:
Average individual contribution index = 6000 8000 = 075 people average contribution index = 6000 8000 = 075
The basic pension is:
Basic pension = 8000 (1+0..)75) 2 40 1% = 2800 yuan
Calculation of personal account pension:
Assuming that the personal account storage amount is 300,000 yuan and the retirement age is 60 years old, then the number of months corresponding to the retirement age is 139 months, and the personal account pension is:
Personal account pension = 300,000 139 = 2,158 yuan
Calculation of the Transitional Pension:
Assuming that the contribution period from the end of 1997 to the end of 1997 is 15 years, then the transitional pension is:
Transitional pension = (8000 + 6000) 2 1% 15 = 1050 yuan
Based on the above calculation methods, his pension income is:
Pension income = basic pension + personal account pension + transitional pension = 2800 + 2158 + 1050 = 6008 yuan
In other words, Mr. Zhang can receive a pension of 6,008 yuan per month.
Summary
Through the above analysis, we can see that retirees with a long working experience in Shandong Province can receive a pension of more than 4,000 yuan;
It may even exceed 5,000 yuan or 6,000 yuan, which provides a reference for those who are about to retire, and also proves the support of China's social security system and the basic security of life after retirement.
Of course, the calculation method and amount of the pension 2 month ** dynamic incentive plan are not static, but adjusted and optimized with the development and change of society. We hope that by reforming and improving the calculation method of pensions, China can better cope with the challenges of population aging and build a fairer and more sustainable social security system, so that every retiree can enjoy the security and warmth of pensions.