On October 26th, the Ministry of Human Resources and Social Security, the Ministry of Finance, State Taxation Administration of The People's Republic of China, China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission jointly issued the Measures for the Implementation of Individual Pensions. It is no exaggeration to say that this method plays a great role in supplementing China's pension system.

How to participate in the personal pension system

Some personal views on the personal pension system

First, the background of the establishment of the personal pension system. In short, the main reasons for the introduction of the personal pension system are:

The first pillar of basic pension insurance is not enough; The coverage of the second pillar enterprise annuity and occupational annuity is too low; The third pillar, commercial endowment insurance, is too slow.

So the personal pension, as the brother of the third pillar of commercial pension insurance, was brought out. Tell me about the situation in detail (you don't have to read it if you are not interested).

the first pillar of the basic old-age insurance, including the basic old-age insurance for employees and the basic old-age insurance for urban and rural residents, belongs to the public pension, which is borne by the state, units and individuals. By the end of September this year, the number of people participating in basic old-age insurance nationwide had reached 1 million.

China's basic old-age insurance is a pay-as-you-go system. Simply put, it means that the money paid by young people is spent by the elderly, and so on. This mechanism was good, but in the future, China will face more and more serious population aging, and in order to continue to maintain the system, it may face less and less pensions.

So, on the basis of the first pillar, the second pillar and the third pillar were established. The second pillar is enterprise annuity and occupational annuity, which are paid by both the unit and the employees, and the state gives policy support. Generally speaking, the participants of the second pillar are concentrated in large enterprises, with about 72 million employees as of the end of March this year.

compared with the total population of our country, this base is too small, and its role is limited. The third pillar is personal savings endowment insurance and commercial endowment insurance, which is the endowment insurance products underwritten by insurance companies. A few years ago, the state also engaged in tax preferential commercial endowment insurance, which means that buying such commercial endowment insurance can be tax deductible. However, because the tax deduction effect is not obvious and it is very complicated, the final effect is not very ideal.

Therefore, the third pillar, which has been dominated by insurance companies, is the shortcoming of old-age security. In this context, in the third pillar, the personal pension system we talked about today has been added.

second, the operation mode of the personal pension system. Jing Ge briefly summarizes the operation mode: we spend money to buy personal pension products and choose the investment targets independently, including savings deposits, commercial pension insurance, Public Offering of Fund and other financial products that meet the requirements. After selecting the target, the relevant institutions will help us to run the investment and distribute the benefits according to the actual investment level. After the money in the account meets the specified requirements, it can be collected. Focus on a few points that everyone cares about:

First: Participants require that the participants of personal pension must be workers who have participated in the basic old-age insurance for urban workers or urban and rural residents in China (the first pillar).

in other words, you can't buy a personal pension if you are not in the first pillar.

No.2: Who is the fund management institution? To be honest, I don't think this piece is too specific. Let me give you a general idea of what I mean after reading the original text. Fund management institutions need to be approved by China Banking and Insurance Regulatory Commission, CSRC and other relevant institutions. Such institutions must be banks, insurance and securities companies with strong investment ability. We can choose a fund management institution based on our personal preferences.

No.3: What is the return on investment? As mentioned above, we can freely choose investment targets with different risk levels for the money we pay, so the return on investment is uncertain. Conservative investment targets have low risk and low upper limit of income; Aggressive investment targets have high risks and high upper income limits.

4th: When can I get it? You need to meet one of the following four basic conditions before you can use your personal pension account:

Case 1: When you reach the age of receiving basic pension, that is, when your social security pension begins to receive money, you can also receive the money;

case 2: you can get it after you have completely lost your ability to work;

situation 3: going abroad to settle down;

case 4: other circumstances stipulated by the state. Therefore, please note that under normal circumstances, personal pension can't be moved for a long time, and it can only be used when we are old.

No.5: How to pay the fee

Payment period: you can pay the fee monthly, in installments or annually;

upper limit of payment: at present, the upper limit of annual payment is 12, yuan.

No.6: How to pay after retirement? Under normal circumstances, we will receive it 12 times a year, and then we will receive it according to the fixed number of years we want to receive, or the fixed amount we receive each time, until it is over.

No.7: What should I do if someone fails to collect it? Can be inherited according to the law of inheritance.

third, the tax preferential policies of the individual pension system. Tax preferential policies can be said to be the biggest advantage of the individual pension system.

the money we pay into our personal pension every year can be used to offset the personal income tax of that year. For example, if you are at the 2% tax rate, it is equivalent to saving you 24 yuan a year. China's personal income tax rate ranges from 3% to 45%, so this tax preference can be enjoyed from 36 yuan to 5,4 yuan for different income groups.

The money we receive in our old age does not need to be deducted according to the personal income tax rate, but only needs to be deducted by 3% tax. I roughly calculated that if your current personal income tax rate is the lowest level of 3%, considering the dual impact of tax when entering and receiving, it is basically equal to no tax preference.

However, as long as the personal income tax rate exceeds 1% (the monthly salary is more than 3,), even if 3% tax is deducted when you receive it in the old age, the final tax preference is still very obvious.

fourth, how to participate in the individual pension? First of all, we should open an individual pension account. The account is established by the participants on the personal pension information management service platform through the national social insurance service platform, the national unified online service portal such as "Pocket 12333" or commercial banks. Personal pension account is used to register and manage personal identity information, and is associated with the basic old-age insurance, recording personal pension payment, investment, collection, deduction and payment of personal income tax.

Next, open an individual pension fund account. This capital account needs to be opened or designated in a commercial bank that meets the requirements. Personal pension fund account provides participants with services such as fund deposit, payment quota registration, personal pension product investment, personal pension payment, personal income tax payment, fund and related rights and interests information inquiry.

these two accounts are unique and correspond to each other. Through commercial bank channels, these two accounts can be opened at one time.

5. Say something personal. Here, Brother Jing wants to say three personal opinions.

No.1: If you are ready to start commercial pension insurance, I think you can spare some money to buy personal pension. From the perspective of income alone, the personal pension analyzed in this paper is not guaranteed, and the commercial pension insurance is guaranteed.

in the current bad environment, I personally think that the pension with guaranteed income is more suitable for choice. However, as long as your tax rate exceeds 3%, the tax incentives for personal pensions are really attractive, and I think it is very worthwhile. Moreover, the upper limit that can be bought at present is relatively low, only 1, yuan. For many friends who are considering pension insurance, this may not be a big number. Not only that, but diversifying assets will also reduce investment risks. If you are not ready to save money for your old age, just wait and see. Anyway, there will always be a personal pension, so keep an eye on the subsequent policy changes.

No.2: It is the consciousness that every adult should have to plan ahead for the aged. The biggest reason for the introduction of personal pension policy is that social security pension is under great pressure. Through the personal pension policy, it can alleviate the problem that the stock of social security pension funds is slowly decreasing.

The national level has realized the seriousness of the problem, so Brother Jing thinks that we should also pay attention to the issue of personal pension. Only when each of us tries our best to solve our own pension problem can the whole country finally solve this problem.

No.3: Compulsory saving plays a vital role in wealth growth. Personal pension is to accumulate money when we are young and compensate for the living expenses in old age. Because it is impossible to get back the cash value before receiving the pension like the commercial pension, it can be said that the personal pension is less flexible than the commercial pension.

why can a product with such poor flexibility become the new favorite of the country to solve the problem of providing for the aged? This shows that the best way to solve the problem of personal living expenses in the future is compulsory savings (the worse the flexibility, the more obvious the effect of compulsory savings). Compulsory savings is the first step in financial management. If even compulsory savings cannot be achieved, no matter how high the rate of return is, it will be a castle in the air for us.