first, it is equivalent to earning more money every year. Eligible people have a preferential tax amount of 12, yuan per year. When they pay, they are exempt from personal income tax. When they receive it, they only receive 3% tax. During this period, they will not receive personal income tax. If the tax rate of our annual income was originally 1%, now 12, yuan of it can be paid tax-free as a personal pension, and 3% is paid when it is collected, which is equivalent to 7% less personal income tax, and the amount less paid is 84 yuan. The higher the tax rate, the more savings. What you save is what you earn. As long as you open an account and transfer funds, you don't have to do anything more, which is equivalent to an extra piece of income. You must participate in this kind of thing. Every penny we usually earn is hard money. Since we can keep a little more, don't give up easily. The amount of 12, yuan is the upper limit, and it is not necessary to use it up. The amount transferred is equivalent to the amount of tax benefits enjoyed. There is no limit to the number of transfers in each year, and it can be transferred in one time or in several times. You can handle it flexibly according to your own situation. This year's situation is quite special. The start of the personal pension system is approaching the end of the year, and tax preferential policies can include this year. Therefore, it is only necessary to open and transfer funds as soon as possible in the remaining month, so as not to waste this year's tax preferential quota. The epidemic is repeated, and it is not easy for everyone. The opportunity to earn more money at the end of the year should not be missed.

second, there is a piggy bank for the aged. Personal pension account is a bit like the piggy bank we used to save change when we were young-at ordinary times, we can only put it in, but we can't take it out. When it is full, it will be broken and taken out at one time to realize our original wishes. When we were young, it was a psychological mechanism that we set for ourselves. Through a closed porcelain jar that can only be saved but not taken, we can control our hands of spending money, and every little makes a mickle, so as to make successful patience for future goals. Personal pension accounts also use a similar psychological mechanism to help us keep a small part of the money we may spend every year, close it up and accumulate a considerable pension fund. The piggy bank is used by us voluntarily, and the personal pension account is also opened by us voluntarily; The piggy bank is placed in our own home, and we can always see that the personal pension account is also in our name, and we can check it at any time in the opening channel (bank or other institution); In case of special circumstances, you can choose to break the piggy bank. Personal pension accounts are not so flexible. Under normal circumstances, you can take it out at any time in one lump sum or in installments after retirement, but you can also get it in advance in some special circumstances, such as total loss of working ability, going abroad to settle down or other circumstances stipulated by the state. The personal pension account is better than the piggy bank because the state gives us tax incentives to encourage us to use it. This is also a common practice in the world. Every country wants its residents to live a better life in providing for the aged, but it depends entirely on the country, and the country can't afford it. So the three pillars of providing for the aged come out. The first pillar is basically providing for the aged, the state is the mainstay, the second pillar is providing for the aged with annuities, the enterprise is the mainstay, and the third pillar is providing for the aged with individuals, and the self is the mainstay. Of course, individuals in the first two pillars also have to pay, one pillar guarantees the basic old-age life, and the second and third pillars improve the quality of old-age life. Tax preference is an important means to stimulate people's participation in the third pillar. Even if we don't consider the incentive effect of tax incentives, it is a good way to use a personal pension account simply to restrain ourselves and save for a rainy day by using a mechanism similar to a piggy bank to accumulate enough pension funds. Therefore, those who do not pay personal income tax may also consider paying personal pension if they meet the requirements. Of course, if the annual income is not plentiful, you can't easily transfer the money into the personal pension account. After all, you should first protect your current life. The money put into the personal pension account will not be taken out for a while. We must fully consider our own liquidity and emergency needs, and then make plans for long-term retirement on the basis of what we can.

thirdly, it helps to form a good habit of investing. Because the personal pension account is closed, it is desirable to retire under normal circumstances, so the money inside is put for a long time, from twenty to thirty years long to more than ten years short. In such a long time, it is very important to preserve and increase the value of the money in the account. Otherwise, under the influence of decades of inflation, the money in the account will continue to shrink, and the role that the money in the account can play when it retires will be very limited. The money in the personal pension account can buy four kinds of financial products: pension savings, pension financing, pension insurance and pension fund. From the perspective of maintaining and increasing value, pension savings are less risky, but the income is low, which may not beat inflation. The other three types of products are more risky, and the income may be higher, which is more likely to beat inflation. For funds that can be invested for a long time, it is more appropriate to choose varieties with higher risk and return. According to the investment law, the longer the time, the higher the risk and return, and the higher the return. For example, stock assets have the best anti-inflation effect in a long time, which can be illustrated by the trend of various assets in the United States in the past 2 years (see the figure below). When we look at the fluctuation and income of the investment object from the current or short-term dimension, it is easy for us to amplify the influence of short-term fluctuation and make a long-term unfavorable choice. However, if we can look at the investment object from the long-term dimension, it is easier for us to make a favorable choice. The following two figures show the comparison of the returns of the two funds. The fund with higher risk is an index fund, and the fund with lower risk is a bond fund. In psychological experiments, when the subjects who participated in pension investment saw the one-year return comparison chart, more people chose the bond fund, and when they saw the 3-year average return comparison chart, more people chose the index fund. The long-term nature of personal pension creates good conditions for long-term investment to obtain high returns, and closed operation also provides a suitable scenario for long-term holding. But the most important thing is that we should make a correct choice in our personal pension account: don't invest in varieties with low risk returns because of short-sighted loss aversion. Personal pension accounts are very conducive to developing the habit of fixed investment, long-term investment and asset allocation. For most people, it is the easiest way to invest in a long-term pension fund. If this investment habit is effective in individual pension accounts, it will naturally spread to other accounts, so the investment of all our assets will benefit from it.

fourth, the cumulative effect may be surprising. The compound interest effect of investment is amazing, although the amount of personal pension we pay each year is limited. If we make a good investment, the return on investment may be several times the principal paid. Do a simple calculation. Suppose we have 3 years to retire and pay 12, yuan of personal pension every year, and the annual investment income is 7%, then the principal payment is 36,, the total investment income is about 85,, and the accumulated pension is about 1.21 million. In reality, an American friend who has paid a personal pension for more than 2 years has accumulated a pension of about $7,, most of which comes from income. As long as we choose a good investment strategy and develop good investment habits, the accumulation of personal pension can make full use of the power of compound interest and produce unexpected results.