We Must Know The Secret Of Extending The Age Of Pension Payment.

1) is the higher the replacement rate the better?

To really understand the secrets of pension, we must first know what the replacement rate means.

Popularly speaking, the replacement rate is the ratio of pension income to wage income. Assuming that you work for a monthly salary of 1000 yuan, after retirement pension is 500 yuan, the replacement rate is 50%.

In this way, many people think that the higher the replacement rate is, the better.

This is not necessarily the case.

In detail, there are subdivision concepts under the replacement rate. There are two important points: target substitution rate and cross substitution rate.

The target substitution rate is the ratio of the retirement income of a single employee to the annual salary before retirement.

This concept is only compared with its own income.

That is to say, the high target substitution rate does not mean that your pension income is high, which means that your pension income may be very low.

For example, a person's retirement income is 100 yuan in the previous month, 80 yuan in the month after retirement, and 80% in the replacement rate. Another high-income person earned 500 yuan in the month before retirement, and 250 yuan in the month after retirement. The replacement rate is only 50%, but obviously the latter is higher than the former.

Generally speaking, the target substitution rate of social insurance in China is more.

Another concept is the rate of cross substitution, which refers to the ratio of retirees' personal pensions to the average social wage of employees in the same period.

This indicator can really reflect the degree of social security after your retirement.

Because this indicator compares your pensions to the money earned by the people who are working now. To put it in a popular way, it is through this to see how old you are after being old, and how many streets you can drop by the people who are working now.

In general, the lower the pension income, the lower the cross substitution rate.

2) how to judge yourself

More or less?

From the above discussion, you can see that the size of your pension should be judged from two dimensions: one is horizontal, that is, the target replacement rate, and the other is the ratio of income to the previous one; one is vertical, and the other is the cross substitution rate.

If we understand this, we won't be fooled by some experts' discussion about the replacement rate in pensions. Some experts may not distinguish these two concepts when discussing professionally, and the government departments are more likely to use the seemingly high target substitution rate to make people happy.

3) how can we judge the standard of living after retirement is comparable to the average social standard of living?

Many people feel that the standard of living after retirement is comparable to the average social standard of living. The personal pension must be the same as the salary before retirement.

Actually, it is not the case. Retirement pension is the same as the average wage level in the same period of the same period.

For a simple reason, the cost of daily life, social entertainment and other expenses decreased after retirement.

In addition, you have to think that the average social wage of the working people still has to support the children who have no income. After comparison, we can draw a conclusion that when the income of retirees reaches the average wage level of the society, their retirement life can reach the level before retirement.

4) over the years, the replacement rate of China's endowment insurance has been getting lower and lower.

Everyone is concerned about how high the replacement rate will be after retirement.

Don't think that this trend has nothing to do with yourself. In fact, whether you get high or low income now, the more or less pension you will get in the future depends entirely on the trend line.

Look at the data provided by a group of experts: the national average substitution rate dropped from 45.45% in 1999 to 32.58% in 2007, down 28.3% in 8 years.

To put it simply, if a retiree can get 45 yuan pension when retiring in 1999, it will only get 28 yuan by 2007.

Moreover, if no measures are taken, the average replacement rate will be lower and lower as the economy grows.

Retirees will increasingly be excluded from the track of social development. At this time, you will be crazy about how happy it is to have a big company around you.

5) the lowest replacement rate of the old age insurance is 40%, and the satisfactory replacement rate is 57%.

The pension replacement rate in China has been significantly lower than 40% in many places, and is still declining.

The ILO stipulated in the Convention on social security that the replacement rate of pensions should reach at least 40%, and the replacement rate in many countries in the world is 40%-60%.

Moreover, the development level of enterprise annuity and personal business pension in our country is very low, mainly relying on social endowment insurance. If the replacement rate is too low, many retirees will fall into poverty.

Of course, the replacement rate can not be too high, because the higher the replacement rate, the heavier the burden on the incumbents and enterprises.

Generally speaking, the living standard of retirees is equivalent to that of in-service workers, with a replacement rate of about 57%.

6) raising the annual pension does not guarantee that the pension will not shrink and the middle class will be in poverty.

At present, the government has increased the retirement pensions every year for more than 10 years, but this only shows that the amount of retirees' pensions (absolute level of protection) has been raised, and the relative replacement rate of the relative level of retirement pension may be reduced considerably because of inadequate adjustment or too small adjustment.

That is to say, the pace of increase can not keep up with the wage growth of workers.

Let's look at the concept of cross substitution rate: Based on a set of

After 10 years of retirement, the replacement rate of the high income group still exceeds 50%, while the low income group's Cross substitution rate dropped to 27.24%, reaching the standard of social assistance only.

Take a look at the so-called middle class now: the replacement rate dropped from 56% to 37.87% after 10 years of retirement, which is lower than the minimum 40% stipulated by the International Labour Organization, and most of the middle class will live in poverty.

7) the longer the duration of retirement, the lower the replacement rate of basic endowment insurance; the lower the level of female pension security.

From the above discussion, it can be easily launched: the longer the retirement time, the lower the replacement rate of the basic endowment insurance.

Considering the two factors of inflation and the increase of the average wage level of the society, the pensions paid by retirees will be lower and lower than the income level of the workers if the measures are not taken.

In short, the sooner you retire, the more you lose.

In reality, we often see such things: two people are basically the same age, a may be a few months earlier than the B, the two social security base is different, the age of the pensioner is also several hundred yuan.

Now female cadres retire at the age of 55, female workers and women.

And helpers retire at the age of 50, and women of special jobs retire at the age of 45. The average retirement age for females is no more than 56 years of age.

However, the average life expectancy of urban residents is over 78 years old, and the average life expectancy is 20 years after retirement.

Moreover, women generally live longer than men. These factors cause women to postpone their pension as time goes by, and the pensions they receive will be less and less.

8) the current social security system does not meet the expected standard of protection.

The replacement rate mentioned above will gradually decrease, not the worst.

The substitution rate is only nominal substitution rate, and the actual replacement rate is even lower.

The replacement rate of social security pension provided by the government is 59.2%. The replacement rate of the standard person who has paid 35 years is 58%, and the replacement rate of the system can only be 49.48%.

To put it simply, the government design wants to give you 59 yuan pension, and the government can only give you 58 yuan, and in the end, you get only 49 yuan.

You can imagine that the management expenses of the staff of the Social Security Bureau and the various kinds of dripping and dropping of social security and so on have led to so many coming out of your faucet.

9) many people can only live on the meager basic pension at the later stage of their lives.

As we all know, the basic pension includes two parts: basic pension and personal account.

Personal account funds are owned by individuals in nominal terms, but the value added rights are in the hands of social security organizations.

The pension of individual accounts is calculated according to the total amount of funds in the account divided by 120 months, that is, the number of annuities issued by the system plan is shorter than the actual life life of the workers.

This leads many people to finish the personal account pension in the later stage of their life, and only rely on very little basic pension.

10) the way of issuing personal account funds should be changed: from the determination of annuity to the way of life annuity payment.

At present, the payment of such personal accounts is definite, and the personal account funds are used or inherited as property, rather than the basic functions of providing for the aged. Some experts suggest that the surplus and deficiency should be adjusted between personal accounts, and personal account funds should be allocated according to the actual life span.

In this way, the living standard of retirees can be better guaranteed.

Of course, Chinese people still regard personal account funds as property, even if there are obvious advantages.