To understand this problem, we must first understand what the money in the personal pension is for. The money in personal pension can be used to buy savings deposits, commercial pension insurance, wealth management products, Public Offering of Fund and other financial products. The product of savings deposit is long-term time deposit, which is characterized by long purchase period and preference for capital preservation, but it is still higher than the normal time deposit interest rate.
However, wealth management products and Public Offering of Fund products have volatility and high risk, and the long-term investment yield is also high. Of course, it is risky in theory, and it is not excluded that the rate of return is relatively low or even loss at a certain point. The risk and yield of commercial endowment insurance products are between savings deposits, wealth management products and Public Offering of Fund products.
Although the number of newborns is decreasing year by year with the aging of the population, the pressure of providing for the aged will become heavier and heavier. In order to relieve the pressure of providing for the aged, the post-80s and post-90s launched the pension fund model, but I am not optimistic about quitting the personal pension and trying to make a stable profit.
Because any similar project has certain risks, it is impossible to make a stable profit. For the post-80s and post-90s generation, if they really want to relieve their pressure of providing for the aged, they should not only rely on this kind of pension fund, but should try to reduce some unnecessary expenses in their lives while they are young, and try to make themselves have some savings. Although your savings may face inflationary pressure, at least you can make a pension for your old age.
This so-called personal pension fund is just a diversified attempt to provide for the aged, which needs to be tested by practice. For the post-80s and post-90s generation, if we take out a small amount of money to try it, maybe we should remember not to put all our eggs in the same basket, expecting such a personal pension to have a stable income. Obviously, it is unrealistic to work hard and save money when you are young.