202 1 What is the pension replacement rate?

The pension replacement rate of 202 1 is around 40%.

The target replacement rate of system design refers to the ratio of pension to the average salary of employees in the previous year when the representative individual employees who continuously participate in the insurance payment retire. Among them, representative individual employees refer to employees who are employed at the working age and continue to pay insurance premiums, and their wages are consistent with the average wages of employees in the same period.

There are four commonly used substitution rate calibers:

1, the target replacement rate of system design refers to the ratio of representative individual retirement pension of employees who continuously participate in insurance contributions to the average salary of employees in the previous year. Among them, representative individual employees refer to employees who are employed at the working age and continue to pay insurance premiums, and their wages are consistent with the average wages of employees in the same period. The target replacement rate reflects the system design, especially the target guarantee level of the basic pension calculation and payment method;

2. The actual replacement rate of pensions for new retirees in that year refers to the ratio of pensions for new retirees in that year to their salaries in the year before retirement. It measures the income difference between individuals before and after retirement. If the salary of the employee in the year before retirement is 3,000 yuan and the pension in the year before retirement is 1500 yuan, the replacement rate is 50%;

3. The average pension replacement rate of all newly-added retirees refers to the ratio of the average pension of all newly-added retirees in that year to the average salary of employees in the previous year. Measure the income difference between newly-added retirees and on-the-job employees in that year, and reflect the actual level of protection of pension calculation and payment methods. Due to the personnel structure, for example, some people don't pay after paying 15 years, and some people don't pay according to the actual salary level when paying, so the base of payment salary is low, which is lower than the target replacement rate of 59.2%;

4. The average replacement rate of pensions for all retirees refers to the ratio of pensions to wages of all retirees in that year, which measures the overall difference in income levels between retirees and incumbents. A big difference between social insurance and commercial insurance is that the state will constantly adjust the pension level according to economic development and price changes.

Article 11 of the Social Insurance Law of People's Republic of China (PRC) stipulates that the basic old-age insurance shall combine social pooling with individual accounts.

The basic old-age insurance fund consists of employers, individual contributions and government subsidies.