What is the social endowment insurance system in China?

There is an indicator to measure the quality of life for the aged in the future, which is the "pension replacement rate". The so-called pension replacement rate refers to the ratio of the pension level of workers when they retire to the wage income level before retirement.

For example, the monthly income before retirement is 20,000, and the monthly basic pension after retirement is 1 10,000, so the pension replacement rate is 50%. The higher the pension replacement rate, the higher the quality of life after retirement; On the contrary, it means that the quality of life after retirement may decline. The World Bank recommends that the pension replacement rate should be 70%~80% to basically maintain the original living standard. The ILO recommended that the minimum standard of pension replacement rate be 55%.

Judging from the current data, the average replacement rate of social security pension in 202 1 is only 43.6%. In other words, social security pension alone is not enough, which is why the personal pension system, as the third pillar of China's old-age insurance, has attracted widespread attention as soon as it was introduced.

According to the data of CBRC, at present, commercial banks have opened more than 24 million personal pension fund accounts; Bank insurance institutions are launching a variety of financial products, such as savings deposits, wealth management products and commercial endowment insurance, for participants to invest and buy in an orderly manner.

Li Hua also suggested that you can open a personal pension account, take out part of the money every year, enjoy tax incentives through the personal pension account, and choose exclusive pension products that meet national regulations, such as pension deposits, pension wealth management products, pension funds, and pension insurance. Personal pension products can meet the needs of pension investment in one stop.

In addition, UP car owners have built their own pension fund portfolio through the method of large-scale asset allocation, and realized the first step of pension planning: to make pension cash flow flow smoothly. For example, after his resignation, he has figured out how much he spent and recorded, maintained a steady stream of cash flow, and initially met the needs of the elderly.

"However, in order to continue to consolidate the pension reserve, we must do the second step of pension planning: let the pension fund gap disappear." Li Hua said that this kind of planning can only meet the current pension needs statically. Once the savings interest rate goes down and inflation rises, it may face asset shrinkage under the double attack of reduced cash flow and increased expenditure. "The funds used for old-age care should be dynamically adjusted with changing factors such as age and market. Only in this way, we are not afraid of shrinking pensions, and we will not let the quality of retirement life decline. "