“The state formulates preferential tax policies to encourage qualified personnel to participate in the personal pension system and receive personal pensions in accordance with regulations.” This is undoubtedly the biggest selling point of personal pension accounts.
Who needs to care about personal pension accounts? This personal pension is essentially a “third pillar pension” construction project promoted by tax incentives.
This is an important supplement to the first pillar basic pension (one of the often referred to as the "four pensions") and the second pillar enterprise annuity. These three together constitute the "three pillars" of China's pension system.
.
I believe that most of the readers of EarlETF are old Christians and have started using funds to plan for retirement very early.
So do you need to pay attention to this personal pension account policy?
Actually, it all depends on your actual personal income tax rate.
The following table shows my country's personal income tax rate, which is divided into 7 levels. This is calculated based on "taxable income" after deducting the four funds, special deductions, etc.
You may wish to open the personal income tax APP and take a look at the "taxable income" and "tax payable". Dividing the two is your actual income tax rate - this number also determines how much money you will receive from your personal pension account in the future.
Tax benefits are available.
For example, if your annual taxable income is 200,000 yuan, then the tax payable is 200,000×20%-16,920=23,080 yuan, and the corresponding income tax rate is 11.54%.
Although the tax preferential policies for personal pensions are not detailed yet, if you refer to the special deduction, personal pensions of 12,000 yuan per year can also be deducted, then the original taxable income of 200,000 yuan will be reduced to 188,000 yuan, and the tax payable
It becomes 20,680 yuan, a decrease of 2,400 yuan.
Of course, the specific tax benefits are just a hypothesis.
But the principle is the same. The higher your actual personal income tax rate, the greater the tax benefits you can get from your personal pension, and the more necessary you are to use your personal pension.
What does a personal pension buy?
What should I buy if I have a personal pension account?
According to the provisions of this policy: Personal pension fund account funds are used to purchase bank financial management, savings deposits, commercial pension insurance, public funds, etc. that are safe, mature and stable, have standardized targets, and focus on long-term value preservation to meet the preferences of different investors.
Participants can choose financial products independently.
There are some friends around me who are already planning to use their personal pension accounts to buy insurance and financial products. Their main idea is to obtain tax benefits and do not want to take risks with the funds in their personal pension accounts.
This is certainly an idea, but it is not one that I recommend for two reasons: ① Withdrawals from personal pension accounts generally require retirement, and the lock-in period is very long.
In such an account, it is a pity to buy some stable products with shorter maturities, but pay the price of such a long lock-in period; ② The long-term returns of stable products are low and not enough to meet the comprehensive needs of future pensions.
In the author's opinion, with an investment cycle of 20 to 30 years for a personal pension account, sufficient equity investment is still necessary. After all, according to the stock fund index released by China Securities Index Company, from 2003 to April 22, 2022
The annualized return is 12.44%.
Funds make money but fundamentalists do not. This has been a long-term problem plaguing China's fund industry.
This problem mainly comes from two aspects. On the one hand, it is the wrong timing of the Christians, which is often the bull market's crazy pursuit of highs and the bear market's crazy cutting of flesh; on the other hand, it is the improper selection of funds, which focuses too much on track-type funds that rise and fall sharply.
.
Personal pension accounts are undoubtedly the best solution to the problem of Christian mis-timing.
After all, once a personal pension account is deposited in a short-term account, it cannot be withdrawn. This forces citizens to become a long-term investor instead of short-term thinking. In addition, in order to obtain tax benefits, you must insist on fixed investment every year. You may be able to enjoy the benefits of fixed investment in the long term.
Smile Curve”.
As for the issue of incorrect foundation selection, since personal pension accounts are still a preliminary plan, it is not yet known whether the categories of investable funds, insurance, and financial products will be limited. However, in the author’s opinion, the various FOFs that have been launched by the fund industry are currently
, especially the life cycle FOF, is actually a good response.
The reason why many Christians have suffered huge losses in the past period is because they mistakenly bought certain track-themed funds that plummeted - these funds were not diversified enough and the risks were no less than stocks.
The biggest advantage of combined investments like FOF is that the distribution of income is more concentrated. Although it is not easy to have a particularly good situation, it is also not easy to have a particularly bad situation. This is more suitable for long-term retirement.
The following table shows the stage income and current income of the six 2050 target pension FOFs that have been established since the second half of 2019. Although there are differences in performance between them, the differences are by no means as big as the fund differences, especially when the maturity is extended.
If you look.