Who needs to care about personal pension accounts?
This kind of 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 (usually called "four gold") and the second pillar enterprise annuity, which form the "three pillars" of China's pension system.
Readers of EarlETF believe that most of them are senior citizens, and they began to use the fund to plan for the elderly very early.
So does this personal pension account policy need attention?
In fact, it all depends on your actual personal income tax rate.
The following table is the personal income tax rate in China, which is divided into 7 grades. This is based on the "taxable income" after deducting four gold and special additional deductions.
You may wish to open the personal income tax APP to see the "taxable income" and "taxable amount". The division of the two is your actual income tax rate-this figure also determines that you can get tax benefits from your personal pension account in the future.
For example, if your annual taxable income is 200,000 yuan, then the taxable amount is 200,000× 20%-16920 = 23,080 yuan, and the corresponding income tax rate is 1 1.54%.
Although there is no detailed preferential tax policy for personal pension at present, if you can refer to the special additional deduction of personal pension of 12000 yuan, the taxable income of the original 200,000 yuan will be reduced to 654,388+088,000 yuan, and the taxable amount will be 20,680 yuan, a decrease of 2,400 yuan.
Of course, the specific tax incentives are only 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 it is to use your personal pension.
What to buy for personal pension?
What to buy with an individual pension account?
According to the provisions of this policy:
The funds in the personal pension fund account are used to purchase financial products such as bank wealth management, savings deposits, commercial pension insurance and Public Offering of Fund that meet the requirements. , safe, mature, stable and standardized, focusing on long-term preservation to meet the preferences of different investors. Participants can make their own choices.
Some friends around me are already planning to buy insurance wealth management products with personal pension accounts. Their main idea is to get tax incentives, and they don't want to take risks with the funds in their personal pension accounts.
This is of course an idea, but the author does not advocate it for two reasons:
① The withdrawal of individual pension accounts usually requires a very long lock-up period after retirement. In such an account, it is a pity to buy some stable products with short term, but pay such a long lock-up period as the price;
② The long-term income of stable products is low, which is not enough to meet the comprehensive needs of future pension.
In my opinion, with the 20-year and 30-year investment cycle of individual pension accounts, it is still necessary to invest enough equity. After all, according to the stock fund index released by China Securities Index Company, the annualized income from 2003 to April 22, 2022 was 12.44%.
It is a long-standing problem that funds make money while citizens don't. This problem mainly comes from two aspects. On the one hand, the people's timing is wrong, often because the bull market is crazy about chasing high, and the bear market is crazy about cutting meat; On the other hand, the fund selection is improper, and it is too concentrated on the track fund with mixed ups and downs.
Personal pension account is undoubtedly the best solution to the problem of bad timing. After all, once an individual pension account is deposited in a short period of time, it cannot be withdrawn, which forces citizens to become long-term investors rather than short-term thinking. In addition, in order to get tax incentives, he must insist on a fixed investment every year. In the long run, he may enjoy a "smile curve" of fixed investment.
As for the problem of wrong base selection, I don't know if there will be any restrictions on the types of funds, insurance and wealth management products that can be invested because the personal pension account is still a preliminary plan, but in my opinion, all kinds of FOFs that have been launched by the fund industry at present, especially the life cycle FOF, are actually good responses.
In the past, many citizens suffered huge losses because they mistakenly bought some track-themed funds that fell sharply-these funds were not diversified enough, and the risk was not much smaller than that of stocks. The biggest advantage of portfolio investment like FOF is to make the distribution of income more concentrated. Although it is not easy to have particularly good situations and particularly bad situations, it is more suitable for long-term pension.
The following table shows the stage income and the income so far of six 2050 target pensions f of established since the second half of 20 19. Although there are differences between the two, they are by no means as big as funds, especially if the term is extended.
Data source fund periodic report
This category can avoid the tragedy of choosing the wrong fund and is more suitable for ordinary people to meet the needs of providing for the aged.
Why is life goal FOF suitable for providing for the aged?
There are many fofs. The reason why we want to take the target pension in 2050 as an example is that such a fund form relatively matches the individual's pension needs.
Many citizens have a bad experience in holding funds, which is largely "risk overexposure".
No matter the post-1970s, post-1980s or post-1990s, many citizens often regard the fund as a stock, which is a partial stock fund in Man Cang. They feel great when they get up, and they feel painful when they fall down.
However, from the perspective of financial planning, such risk exposure is problematic, because the closer to retirement, the more stable investment allocation should be.
In financial management, there is generally a law of "100- age". For example, for a 30-year-old citizen, 70% of the equity investment ratio is more appropriate. If he is 40 years old, it should be reduced to 60%.
But to do this, it involves regularly adjusting the proportion of funds with partial stocks and partial debts, which is too complicated for ordinary people.
The advantage of life-cycle FOF fund is that it will automatically adjust the ratio of shares to creditor's rights and assets according to the set rules during the long operation.
The following table comes from the prospectus of China-Europe Prospective Pension 2050FOF(00724 1). It can be seen that the initial proportion of equity assets is relatively high, such as the current 65% to 80% in 2022.
However, with the approach of the retirement target year in 2050, the proportion of equity assets will gradually decline, only 0-27.07% in 2050, and after retirement in 20250, this proportion will further decline, and the lowest will be less than 20%.
The picture below may look more intuitive.
This setting is equivalent to providing a scientific and "automatic" combination of stock and bond allocation for holders.
Self-operated mode to reduce costs
As a new form for professional investors to help choose funds, FOF and fund investment have matured after years of development.
However, it is undeniable that both FOF and fund investment have to charge additional management fees. The interest rate of the fund itself plus twice the interest rate of FOF or investment is a concern of many investors-especially if the individual pension account is held for 20 or even 30 years.
This is really a huge challenge.
The following table is a trial calculation, which estimates the final income loss under the 30-year dimension if the management fee loss of 0.9% is superimposed under the different long-term income of the fund itself.
It can be seen that under the different long-term expected income of 8% to 15%, the annual management fee of 0.9% will lose 20% to 25% after being superimposed for 30 years, which is also a quite amazing figure.
On the premise of holding a pension account for a long time, I personally appreciate the idea of China-Europe Vision Pension 2050FOF(00724 1). This is obviously a solution to minimize the management fee of FOF.
In the first quarterly report in 2022, the fund manager summed up the idea of investing in equity assets in this way: China-Europe internal initiative+external index fund.
This is a clever idea for a fund company like China Europe Fund, which focuses on stocks.
The following figure shows the management fee collection terms of FOF fund (00724 1) held by China and Europe in 2050. Please pay attention to the highlighted part. This passage looks a bit obscure. In the vernacular, FOF in Central Europe buys its own fund in Central Europe. There is no management fee for FOF in this part, and there is no repeated charge.
Screenshot from the prospectus of China-Europe Forward-looking Pension Holding FOF Fund in 2050.
Theoretically, if FOF holds all its own funds, the management fee of FOF is almost zero.
The product line of China Europe Fund is still very rich, and there are many star fund managers in the growth track of consumer medicine technology. Besides, it is not difficult for Cao Mingchang in the early years and Yuan in recent years to "produce and sell".
Of course, FOF fund managers will have some phased tendencies according to market conditions, and they will do it through index funds of other companies.
The following table shows the fund positions held by China Europe International Business School in the third quarterly report of FOF in 2050, adding the first bank ETF. Although this position does not belong to CEIBS, FOF will charge a management fee, but because Huabao's bank ETF management fee is 0.5%, which is much lower than that of active funds, even if the 0.9% management fee charged by CEIBS holding FOF in 2050 is added, the superposition of the two still does not exceed the management fee level of ordinary active funds 1.5%.
Screenshot Source Fund 202 1 Third Quarterly Report
In this way, CEIBS foresees that holding FoF in 2050 can control the total management cost of the whole FOF to a certain extent, similar to partial stock funds, and it does not need to bear the loss of income caused by the double cost of FOF.
In my opinion, if we focus on pension accounts, we can look at this strategy in Central Europe and control the rates.
Of course, as a FOF, it is good to save rates, but the core still hopes to have considerable excess returns in fund selection and allocation.
The following table is the historical rate of return as of March this year, 365,438+0. It can be seen that it has outperformed the Shanghai and Shenzhen 300 Index in multiple time dimensions.
Fund performance and benchmark come from regular reports, and the index comes from wind, as of March 3, 20221.
If we look at the annual income, there will be significant growth in 2020 and 202 1 year.
The source of fund data is periodic report, and the source of index is wind, up to the end of 20021.
Although it will take time for the personal pension account to be launched from the policy to the landing.
But in the long run, it is time to start screening suitable fund products first, and then operate directly after the policy is implemented.