Interpretation of individual endowment insurance policy

The General Office of the State Council issued the Opinions on Promoting the Development of Personal Pension, which is a concrete measure to build a multi-level and multi-pillar pension insurance system and standardize the development of the third pillar pension insurance, and is of great significance to meeting the diverse needs of the people.

First of all, briefly introduce the concerns of personal pension.

According to the "Opinions", individual pensions are subject to a personal account system, and the payment is entirely borne by the insured and completely accumulated.

1. Insured: people who have participated in social security. Employees who participate in the basic old-age insurance for urban workers or the basic old-age insurance for urban and rural residents in China can participate in the individual old-age insurance system.

2. Participation method: Participants establish personal pension accounts through the personal pension information management service platform (hereinafter referred to as the information platform) and enjoy preferential tax policies on this basis. Relevant scholars believe that the EET model will be adopted in tax incentives, that is, tax exemption will be adopted in the insurance participation stage and fund utilization stage, and tax will be levied in the pension collection stage. At present, the upper limit of the annual personal pension paid by the insured is 12000 yuan.

"The executive meeting of the State Council held on September 26th decided to give personal income tax preference to personal pension supported by policies and commercialized operation: the payer is deducted before tax according to the annual limit of1.20 thousand yuan, and the investment income is not taxed for the time being, so the actual tax burden is reduced from 3%. 3% is equivalent to a tax rate ranging from 5,000 to 8,000 yuan. "

3. How to invest and operate the pension?

The insured person uses personal pension to purchase financial products in qualified financial institutions or channels entrusted by them according to law, and bears corresponding risks by himself. Investment targets include financial products such as bank wealth management, savings deposits, commercial endowment insurance, Public Offering of Fund, etc., which are safe in operation, stable in maturity, standardized in targets and long-term value preservation, for individuals to choose independently.

The personal pension fund account is closed, and its rights and interests belong to the insured. Unless otherwise stipulated, it shall not be withdrawn in advance.

Relevant financial institutions and financial products are determined by relevant financial regulatory authorities and released to the public through information platforms and financial industry platforms.

4. how to collect it?

After reaching the age of receiving social security, he completely lost his ability to work and settled abroad. After verifying the receiving conditions, the information platform can receive personal pension on a monthly basis, by stages or at one time. Once the receiving method is determined, it cannot be changed. After the death of a participant, the assets in his personal pension fund account can be inherited.

5. How to supervise?

Ministry of Human Resources and Social Security and the Ministry of Finance provide macro guidance on the development of individual pensions, formulate specific policies and conduct operational supervision on account setting, payment ceiling, treatment and tax incentives of individual pensions according to their responsibilities, and regularly disclose relevant information to the public. The tax authorities shall conduct tax collection and management of individual pensions according to law.

Second, the necessity of individual pension accounts

Let's talk about the current endowment insurance system in China. China's endowment insurance system is a "three-pillar" system. The first pillar is basic old-age insurance, that is, urban and rural old-age insurance; The second pillar is enterprise/occupational annuity; The third pillar is personal savings pension and commercial pension insurance.

1) as the first pillar, the "social security" adopts the pay-as-you-go system, that is, the employees pay the fees and pay them to the retirees after overall planning. The payment in social security is completed jointly by individuals and enterprises.

In the early days of the establishment of the system, the system worked well, but with the aging of society and the deterioration of population structure, the social security fund of pay-as-you-go system was tested.

According to China Pension Actuarial Report 20 19-2050, the social security fund will have a current deficit of 1 100 million yuan by 2028. If financial subsidies are not considered, the current balance will be negative by 20 19. At the same time, the accumulated balance of social security funds will also reach the peak of 1 trillion yuan in 2027, and then begin to decline rapidly, and the accumulated balance will be exhausted by 2035. However, both financial subsidies and delayed retirement policies have great limitations.

2) As the second pillar, the enterprise/occupational annuity only covers more than 58 million people, mainly for large and medium-sized state-owned enterprises and banks (mostly for railway, power grid, petroleum and petrochemical, tobacco and other industries), as well as government agencies and institutions. The burden on enterprises is also heavy and the development is difficult.

With the aging of the population, the first pillar of basic old-age insurance is "one family is the only one", the second pillar of enterprise annuity develops slowly and its coverage is relatively small, while the personal pension system as the third pillar has not yet been introduced, and residents are paying more and more attention to how to enrich the "money bag" of old-age insurance, so it is urgent to promote the construction of the third pillar of old-age insurance.

From May 20 18, the third pillar pension insurance was piloted in Shanghai, Fujian and Suzhou. In the government work report of 202 1, it is mentioned for the first time that the third pillar endowment insurance should be standardized. In September of the same year, the China Banking Regulatory Commission approved the establishment of a national endowment insurance company, which was jointly initiated by 17 companies including ICBC Wealth Management. The "all-star" lineup of shareholders covers the head companies of three types of financial institutions: banks, insurance companies and brokerages. At the same time, since the second half of 20021,China has started the pilot of exclusive commercial endowment insurance and endowment wealth management products.

China's personal pension account also invests in qualified bank financing and Public Offering of Fund, so it depends on the development and perfection of domestic capital market. For example, when the British and American capital markets are more mature, their pensions will flow to the equity markets with higher returns. For example, in the American 40 1K plan, nearly 60% of the assets will eventually be invested in stocks.

In addition, it will take a long time for the individual pension account to grow and develop. For example, the United States began to implement the individual retirement plan (IRA) from 1974, which covered 40% of families in 2004. It was not until 20 16 that the scale of individual pension accounted for the largest share of its retirement system, with a total investment of 8 trillion US dollars, and the whole process lasted for 40 years.

Summary:

The first pillar of the basic old-age insurance aims at wide coverage, basic protection and sustainability, and does not bring too much pressure to finance, enterprises and individuals;

The second pillar covers fewer people.

Therefore, the state vigorously promotes the third pillar of old-age care to supplement the demand for old-age care.

Third, how do investors choose and plan?

There are three options for the third pillar pension:

1) The "individual pension account" promoted by the state has the advantages of tax extension and tax preference when depositing, but the disadvantage is that there is tax when collecting, and the upper limit is 12000 per person per year, so the supplement to pension in the future is very limited.

2) Domestic annuity insurance and incremental life insurance generally have a yield of around 4%. The advantage is tax avoidance, which can support the services of the old-age community and nursing homes; The disadvantage is that limited by domestic investment, it is impossible to choose multiple currencies.

3) Hong Kong and Macao annuity insurance and dividend insurance products have a yield of around 7%. Their advantages are tax avoidance, global diversification, protection of private property (personal property is still in marriage), and their products are relatively mature; The disadvantage is that it can't support domestic pension communities and nursing homes.

Then when planning a pension, individuals need to calculate the gap of the pension that needs to be supplemented according to the family financial situation, such as the current expenditure level, and then configure their own pension plan according to their own preferences.

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