How do Americans prepare their pensions?

Before May Day, Dai Xianglong suggested extending the retirement age by one year every five years. A stone stirs up a thousand waves. Various media have discussed and reported on this matter. China's current pension system (social security) should have a high proportion of individual and employer contributions. Due to the different development levels of cities in China, the proportion of pension payment is somewhat different, but it accounts for about 20% of individual wages (the upper limit is three times the average social wage of the previous year). Individual contributions go into personal accounts, while enterprise contributions go into social pooling. The contribution rate of social security employers in Hong Kong is 5%, and the maximum contribution in 20 12 is 1250 Hong Kong dollars/month. In the United States, the social security payment method is 6.2% for employers and 4.5% for individuals (the maximum annual salary of 2012 years is $65438 +0 10,100); After retirement, the contribution ratio of medical insurance employers and individuals is 1.45%, with no upper limit. All contributions go into the social pooling account. 1) China's existing social security fund system is relatively perfect after 1997. It can be said that it started quite late. 2) The aging population in China is accelerating. Social security fund is like a piggy bank. Working people put money into it, and retired people reach out and take money from it. If you take it faster than you throw it, the money will naturally run out soon. Employer's pension plan. This is an employer's unilateral pension. The premise is that employees must have worked in the enterprise for ten years. How much money employees can get from this enterprise after retirement depends on the years you have worked in this enterprise and the average salary in recent years. But now, in addition to government departments, fewer and fewer enterprises adopt this method. The reasons are: first, the employer's responsibility is great, and second, the high turnover rate caused by economic instability. 401K. this is also the behavior of the employer, not stipulated by national laws. Generally speaking, employees put a certain proportion of their salary (usually 4%-6%) into a trust institution (such as Merrill Lynch and Goldman Sachs). ), the employer will invest a certain proportion (generally 50% of the employee's deposit, that is, 2%-3%). Individual employees can choose their own investment products from the investment options provided by trust institutions. This money is deducted from the salary every month, and no tax is paid in that year (tax is paid when it is withdrawn after retirement, also called deferred tax payment). The federal tax bureau has a limit of 40 1K on the maximum amount that an individual can put in each year. 40 1K is a popular practice in America, but not every employer has it. Generally, small employers do not have such benefits. The United States is a country with market-oriented mechanism. If enterprises want to attract outstanding talents, they will naturally try their best to improve the welfare of their employees. China municipal government is trying something like 40 1K to supplement the social security pension fund. Preferential tax policies for personal pension investment and financial management. Some people invest in stocks, funds and real estate to supplement their pensions. The government has introduced many preferential tax policies for personal financial pensions. Individuals can spend a certain percentage of their annual income on retirement investment. This money is taxed every year, so you don't have to pay taxes when you withdraw it after retirement. The federal tax bureau has set a ceiling on how much money each person can deposit into this account every year. B. traditionalism a. Individuals can take out a sum of money from their annual income and invest it in financial management. The money was not taxed at that time, but it was taxed when it was taken out after retirement. Because it was tax-free, the federal tax bureau also limited the annual tax-free investment. C. tax-free retirement plan for selling houses. Selling a house is subject to VAT. The United States can not pay taxes on the value-added part of the houses sold by retirees, but can only pay taxes on a house where they live. The minimum payment period of social security pension is ten years. The spouse who loses his spouse can inherit the social security pension of the other spouse. Social insurance pension can be withdrawn at the age of 62, but only 75% can be withdrawn at this time; If you wait until you are 70, you can withdraw more. This is a policy to encourage people to take it as late as possible. How much the social insurance pension can get each month is calculated according to the average income of the individual before retirement. If your income is higher before retirement, you will get more after retirement. The annual social security pension paid by the state will be adjusted according to the inflation index. Is the social security pension enough? It depends on who. For an ordinary wage earner, this money can meet the basic needs of life; For a person with higher income, it may be just pocket money. So, how much does it cost to retire in America? This should be calculated according to the living standard of each family. The general calculation method is this: you think you need $50,000 a year after retirement (you may have paid off your mortgage by then). Then you have to calculate how much money you need to save every year from now on and how to save it to provide you with this income. If the social security part can give you 20 thousand, then the other 30 thousand depends on you personally. You must take inflation into account. The United States is a country that consumes in advance. It is said that America is rich, but many ordinary people live a life of talking back. At retirement age, some people have only a little money in social insurance. If an American can save 15% of his monthly income, it should be better. American pension tax policy is very complicated. Here can only be briefly introduced; If you elaborate, I'm afraid it will be written into a book. China's pension system is still improving.