What are your plans for retirement? Is it to raise children to prevent old age, or to save money by yourself, or to pay pensions? Let's settle an account today. Assuming that you are not an employee of an enterprise or institution and do not have a formal job, if you do not pay social security, you can save 1,000 yuan into your card every month for 30 years, and you can live a worry-free life after retirement? The answer may not be what you think.
First of all, let's be clear that we are talking about flexible employees, and if there is a unit to pay social security for you, then there is no need to worry. If you are unemployed, you can choose to pay or not to pay social security, but if you decide to pay, all the expenses will be borne by yourself, and the burden will be quite heavy every month.
Is it reliable to pay social security, or is it reliable to save money by yourself?
Let's do the math first.
If you save 1,000 a month, it will be 10,000 2 a year, and if you save it for 30 years, the principal will be 360,000. As for the interest, each bank has different deposit methods, such as fixed deposits and current deposits, and the interest is different.
If you deposit regularly, only your 1000 principal in the first month can save enough for 360 months, starting from 1000 principal in the second month, it is 359 months, and so on, until you finally save the 360th principal of 1000 yuan, you can only save for one month. Anyway, the calculation of interest is 360 + 359 + 358 + ...1. In the end, according to the regular interest rate of 2%, the total interest is about 110,000.
If you add 360,000 principal, that is to say, if you deposit 1,000 per month, you can get a total of 36+11 equal to about 470,000 deposits after 30 years.
Assuming that you retire at the age of 60, according to the average life expectancy in China, you can live at least to 80 years old, then you have to rely on the 470,000 yuan to ensure the pension life for the past 20 years, including all living expenses and medical expenses, on average, less than 20,000 yuan per year, and a month's living expenses are almost 2,000 yuan. At this level, do you think it's enough?
In fact, whether it is enough or not depends on the consumption level of your area and what kind of life you want to live. If it is a third- or fourth-tier town, or a township, and you don't have any serious illness, 2,000 yuan a month is enough for the elderly. However, if you are not in good health, need to take medicine for a long time, or live in a big city, 2000 a month may be a problem to even eat enough.
Not to mention that 20 years from now, at the current price level, it is acceptable for a single person to spend 8,000 to 10,000 yuan a year on food. But what if you're not in good health? Now the elderly friends have some high blood pressure, diabetes, or the bones, blood vessels and heart are not very good, which need to take chronic medicine for a long time.
We need to spend about 100-400 a month, so we have to prepare 2000-4800 a year. This is just the consumption of anti-stress drugs, not counting other ailments. That is to say, you have to prepare at least 10,000 yuan for food a year, plus about 5,000 for medicine, as well as some small daily expenses, and at least 2-30,000 yuan a year to support the elderly without big expenses.
And what we calculated before, if you save 1,000 a month, you can get 20,0004 a year after 30 years, in comparison, it can be said that it is relatively reluctant, you can eat enough, but you have almost no ability to entertain.
People work hard all their lives, isn't it just to enjoy happiness in their old age? If you want to eat some fresh fruits, chicken, duck and fish, occasionally go out to relax, go shopping and buy something, and you still have to pick and search for pounds, then this kind of pension level, I advise you to give up.
And there's one thing we haven't discussed, and that's the price level in a few decades. Think about it, can the 90s and the present be compared? At that time, a bowl of real beef noodles was only two or three yuan, but now you can't afford to eat it without 20 yuan in the city. In the 90s, China's total GDP was less than 5 trillion, but in 2022, our GDP has exceeded 120 trillion, a 33-fold increase. So how much can you buy for 1,000 yuan now in 30 years? We don't know, but the purchasing power is certainly not as strong as it is now.
But don't worry too much, because when the time comes, we don't have to take out all the money at once, if the monthly expenses are large, take more, if you usually save, take a little less, and the rest will continue to be put in the bank, and there will be interest. And when the time comes, the more our country develops, the better it gets, and the welfare security in all aspects of society will also progress. Then when the country develops in the future, we will be able to enjoy more benefits.
To sum up, if you choose to save money by yourself and save 1,000 per month, it will be enough to support your old age after 30 years, at least basic living, food and clothing are no problem. If you want to treat a serious illness and have fun, it can be stressful.
After talking about saving money, let's take a look at paying social security.
If it is to pay pension insurance, in fact, it is also very beneficial, the most obvious is that the country is back, the annual pension is going to **, and the older you are, the longer the protection will be, and the more cost-effective the investment will be. If you firmly believe that you can live to be 90 or 100 years old, then it is very cost-effective to pay pension insurance, and you will be more down-to-earth and more confident in doing things.
Secondly, there is no need to worry too much about inflation, after all, the division of personal pensions is linked to regional income and price levels, so the state takes into account the ability of pensions to resist price inflation when planning.
All in all, if you choose to save by yourself, then you have a higher degree of freedom, you can flexibly use it for emergencies, and you can leave it to your children if you can't use it up, but the income will not be very large, and you can only maintain basic needs; If you choose to call it endowment insurance, you are not so free, but it is more stable and more down-to-earth. In fact, there is a third way, that is, if you have the ability, try to choose a combination of the two, and choose a financial management method that suits your risk tolerance and return expectations, so as to achieve long-term asset accumulation. As for how to choose, everyone will decide according to the situation.