Under normal circumstances, it is difficult to maintain the standard of living before retirement if you only have social security pensions after retirement. Therefore, many people choose commercial pension insurance or pension target funds as supplements.

So, which one is more reliable, pension target fund or commercial pension insurance?

Today we will briefly analyze it.

1. How to purchase commercial pension insurance. Generally, commercial pension insurance requires a one-time lump sum payment, or monthly payments for 10 or 20 years (such as Alipay's "National Insurance*Lifetime Pension"). You will not start receiving a fixed pension every year until you retire.

If you surrender the policy midway, you can only receive a small portion of the cash value, resulting in a greater loss.

The pension target fund is open for purchase at any time, and investors can decide the frequency and amount of purchases at will. The lock-in period of the pension target fund is three years, and its liquidity is better than commercial pension insurance.

2. Redemption method Commercial pension insurance generally requires pensions to be collected annually or monthly after retirement, while pension target funds can be redeemed at will as long as they are open during the open period (closed period of 3 years). The redemption frequency and redemption amount are both

Unrestricted.

3. Stability of expected income Generally speaking, commercial pension insurance has a guaranteed expected income. As long as the insurance company is still there, the expected income of this product will be paid.

In fact, life insurance companies are not allowed to go bankrupt. Even if they go bankrupt, they will be taken over, so this part of the expected income is relatively reliable.

Pension target funds are still funds in nature and do not guarantee any expected returns. Investment risks are borne by investors with confidence, and the expected returns may fluctuate more than commercial pension insurance.

Generally speaking, the expected return of commercial pension insurance is more reliable than that of pension target funds, but flexibility is not an advantage. If they can hold it for a long time, investors with higher risk appetite can choose pension target funds.