For those born in the 1990s and 2000s with higher incomes, it is still very necessary to buy personal pensions.

There are four main reasons:

First, enjoy the preferential treatment of personal income tax.

Now many people born in the 1990s and 2000s have very high income levels and need to pay personal income tax. The personal pension system is a tax-deferred pension system. If we participate, the income paid into the personal pension will not be subject to personal income tax. Of course, you will need to pay personal income tax when you receive it in the future. The specific tax rate will be determined based on the income level at that time.

For example, if the maximum annual payment is 12,000 yuan, and the personal income tax rate is 20%, this will save at least 2,400 yuan in personal income tax. This money can also form investment income. When you receive it in the future, if your income level is low, you may only be taxed at 3%.

Second, effectively control individuals’ uncontrolled consumption.

The personal pension system is a closed management of personal accounts, and generally cannot be withdrawn at will except under specified conditions. According to current information, the main reasons are reaching pension age, completely losing the ability to work, or leaving the country to settle down.

In real life, many people save money but don’t save much money. The main thing is to save and spend it for various reasons. However, after the personal pension is paid, it can only be used for future retirement, which is really good for yourself.

Chinese people have a strong sense of planning for a rainy day, and I believe many people will still choose to do so.

Third, enjoy higher investment returns.

Now that we deposit money in banks, the interest rates on deposits are getting lower and lower. At present, many banks have reduced the interest rate on three-year certificates of deposit to 2.9%. In our personal investment and financial management, we rarely see financial products with a yield of more than 5%.

However, since the end of last year, the state has promoted banks to issue specialized pension financial products, and the benchmark interest rate for performance comparison can actually reach 5% to 8%. At present, the sales scale has reached 260 billion.

Fourth, respond to the reduction in social security and pension benefits.

Pension insurance has three pillars. In the past, most people relied on the first pillar, social security pension. However, the current pension level of the first pillar has reached more than 3,000 yuan, which is a relatively high level. After all, according to the purpose of social income redistribution, the first pillar will be to protect the basics of society, and income will become increasingly equalized. In recent years, the slowdown in the adjustment of pension insurance benefits also shows that the level of benefits in the first pillar will not increase rapidly.

In order to reflect the gap in pension benefits in the future, the most important thing is to rely on corporate annuities or occupational annuities, as well as this part of personal pensions. If this reality is not recognized, future pension benefits will really not be very high.

The personal accounts of those born in the 1990s and those born in the 2000s are composed of individual payment parts and unit coordination parts. Because they are newcomers to pension insurance payments. When you retire, only personal account pensions and grassroots pensions participate in the assessment. They are not middle-aged people. The middle-aged people have been approved for transitional pensions that are regarded as contributions. They have joined the work after the implementation of social insurance, and they do not have seniority deemed to be contributions.

The above is a detailed introduction to the relevant knowledge about the laws and regulations related to pension insurance. I believe that through the above introduction, everyone should have an understanding of the laws and regulations related to pension insurance.

Legal basis: "Social Insurance Law of the People's Republic of China"

Article 10 Employees shall participate in basic pension insurance, and the employer and employee *** shall pay the basic pension together insurance.

Individual industrial and commercial households without employees, part-time employees who have not participated in basic pension insurance in the employer, and other flexible employment personnel can participate in basic pension insurance, and the basic pension insurance premiums are paid by individuals.

The measures for pension insurance for civil servants and staff managed with reference to the Civil Servant Law shall be prescribed by the State Council.

Article 11 The basic pension insurance shall be combined with social pooling and personal accounts.

The basic pension insurance fund is composed of employer and individual contributions and government subsidies.

Article 12 The employer shall pay basic pension insurance premiums in proportion to the total wages of its employees stipulated by the state, and record them into the basic pension insurance pooling fund.

Employees shall pay basic pension insurance premiums in accordance with the proportion of their wages stipulated by the state and record them into their personal accounts.

Individual industrial and commercial households without employees, part-time employees who have not participated in basic pension insurance in the employer, and other flexible employment personnel who participate in basic pension insurance shall pay basic pension insurance premiums in accordance with national regulations, respectively. Credited to the basic pension insurance pooling fund and personal account.

Article 13 Before employees of state-owned enterprises and public institutions participate in basic pension insurance, the basic pension insurance premiums that should be paid during the deemed payment period shall be borne by the government.

When there is insufficient payment from the basic pension insurance fund, the government will provide subsidies.

Article 14 Personal accounts are not allowed to be withdrawn in advance, the accounting interest rate shall not be lower than the bank time deposit interest rate, and interest tax is exempted. If an individual dies, the balance of his or her personal account can be inherited.

Article 15 The basic pension consists of the overall pension and the personal account pension.

The basic pension is determined based on the individual’s cumulative contribution years, contribution salary, average salary of local employees, personal account amount, average life expectancy of the urban population and other factors.

Article 16 Individuals participating in basic pension insurance who have made cumulative contributions for fifteen years when reaching the statutory retirement age shall receive basic pensions on a monthly basis.

Individuals participating in basic pension insurance who have paid less than fifteen years of cumulative contributions when reaching the legal retirement age can pay for fifteen years and receive a basic pension on a monthly basis; they can also transfer to a new rural social pension system Insurance or social pension insurance for urban residents, and enjoy corresponding pension insurance benefits in accordance with the provisions of the State Council.

Article 17 If an individual participating in the basic pension insurance dies due to illness or non-work-related reasons, his or her surviving family members may receive funeral subsidies and pensions; Those who are disabled due to work and completely lose the ability to work can receive disability allowance. The required funds are paid from the basic pension insurance fund.

Article 18 The state establishes a normal adjustment mechanism for basic pensions. Based on the growth of average wages of employees and rising prices, the level of basic pension insurance benefits will be increased in a timely manner.

Article 19 If an individual is employed across a coordinated area, his basic pension insurance relationship will be transferred with the individual, and the years of payment will be calculated cumulatively. When an individual reaches the statutory retirement age, the basic pension is calculated in segments and paid uniformly. The specific measures by the State Council.

Article 20 The state shall establish and improve a new rural social pension insurance system.