How many years to live the social security will not lose

China is "running" into the aging society, the problem of old age has been the focus of netizens. Some time ago, a "how long to live in order to earn back the social security you pay? The article said that it is necessary to live to nearly 90 years old in order to get back the money you paid for social security.

"According to the calculations, if you paid 30 years of pension insurance and retired at age 60, it would only take you 27 years to be able to get your principal back, that is, until age 87. But since the average life expectancy in society is 74 years, you have to live 13 years past the average age to get your principal back and make sure you don't lose out. If the retirement age is delayed in the future, then you'll need to live a bit longer still. "

How long do you have to live to earn back the pension you paid into?

A few days ago, there was a rumor on the Internet that "China's social security contributions are the highest in the world," and many experts have come out to deny it, sparking a war of words. On the issue of China's social security contribution rate is not high, I think many people are wrong direction, the contribution rate must be put together with the rate of return to refer to the value, simply look at a contribution rate is meaningless, after all, you pay social security is in order to be able to enjoy the return, no one is purely for the purpose of payment of social security and social security, then become a living thunderbolt. Here we examine in detail whether China's social security is worth paying in the end.

Many people don't know exactly how much they pay each month for social security. In Beijing, for example, the average annual salary of Beijing workers in 2011 was 56,061 yuan, and the average monthly salary was 4,672 yuan. Therefore, in 2012, the upper limit of the social security contribution base is three times the average monthly salary of employees in 2011, i.e. 14,016 yuan; the lower limit of the social security contribution base for pension insurance and unemployment insurance is 40% of the average monthly salary of the previous year, i.e. 1,869 yuan; and the lower limit of the social security contribution base for basic medical insurance, work-related injury insurance and maternity insurance is 60% of the average monthly salary of the previous year, i.e. 2,803 yuan.

That is to say, if you are a Beijing urban household employee, your unit will pay at least: 1869X(pension 20%+unemployment 1%)+2803X(basic medical care 9%+industrial injury 1%+maternity 0.8%+large amount of medical care 1%)=723.24 yuan per month for you; and you yourself will have to pay at least: 1869X(pension 8%+unemployment 0.2%)+2803X(Basic Medical 2%+Worker's Compensation 0%+Maternity 0%+Large Medical 3%)=$212.32. Provident fund only contribution ceiling did not set the lower limit base, units and individuals each contribute 8% to 12% of the average monthly pre-tax income, *** with the same contribution of up to 2906 yuan, that is to say, personal deductions of up to 1,453 yuan.

The following pre-tax salary of 10,000 yuan as an example of specific calculations:

Your pre-tax salary of 10,000 yuan, personal payment of social security and provident fund for 1823 yuan, the unit payment of social security and provident fund for 3980 yuan, after deducting the social security and provident fund (housing provident fund in the future can be refunded to you), the personal tax payable is 4677 yuan, pay personal tax is 380.40 yuan, eventually you can get 7797 yuan, accordingly your unit labor cost is 13980 yuan, the difference is 6183 yuan, this money is equivalent to the mandatory savings.

I once wrote an article called "Social Security is actually a Ponzi scheme", the characteristics of the Ponzi scheme is that the lower house to the upper house to pay money, wait until you can't find enough lower house, the whole scam is going bankrupt. The pensions paid by young people in the workforce now have actually been spent by the current generation of older people. When our generation retires, the next generation will be asked to pay our social security, but the problem is that the number of the next generation is getting smaller and smaller, so where can we find so many underlings? Many young people mistakenly think that when they grow old, they will be able to enjoy pensions similar to those enjoyed by the elderly now, which is basically a pipe dream. You have to realize that the rules of Social Security are always changing, and you're basically on the losing end of every change. By the time it's decades from now, you'll have paid in a cow and gotten back a chicken.

Social security is divided into pension, medical, unemployment, work injury, maternity, provident fund and so on, we will look at the pension alone. Since the rules of social security are extraordinarily complex and changing all the time, I'll tell it as simply as possible.

You pay two kinds of pensions, one is the part of the unit to pay 20% of wages (Shanghai is 22%), one is the part of the individual to pay 8% of wages, of which the part of the unit to pay you have nothing to do with, all into the social account (in fact, it has already been spent on the current retirees to pay the pension), the part of the individual to pay into the personal account.

If you pay less than 15 years, then you can not enjoy the pension treatment, you can personal contribution part of the lump sum to receive away, the unit payment part of the unit because it has been spent, so with you also has nothing to do. This is a nightmare for those who work in the field, unless you are sure that you can work in a place for 15 years, then you have to consider whether to pay the pension.

Assuming you've paid in for 15 years and have the right to take the money under current rules, the next question is how you'll get the money when you retire. The average life expectancy of Chinese people is now 74 years old, you retire at 60 years old, you can only live for 14 years, 14 years is 168 months, by then you can give each month to take the money is divided into two parts, part of the personal account divided by 168, each month to receive 1/168 of the balance of the personal account. The other part is X% of the average social wage at that time, where X is the number of years you pay pension, if you only pay 18 years, it is 18% of the average social wage at that time.

Here's how long you have to live to get your money back, because we don't know what the average wage will be in a few decades, nor do we know what the future inflation rate will be, nor do we know how the country's regulations will be changed, so we're all calculating on the basis of the current data as an example.

Assuming that white-collar worker Wang San works in Beijing and settles there for a long time, with a monthly salary of 10,000 yuan, and pays his pension for 30 years, the total amount he pays is: 10,000 X 28% X 30 X 12 = 1 million, and the personal contribution part is 290,000 yuan. When he retires, the monthly pension he can receive is divided into two parts, one is the personal contribution divided by 168, which is 1700 yuan, and the other part is 30% of the average social wage, because he paid for 30 years, 4672X30%=1400. the two add up, 1700 + 1400 = 3100 yuan. That's the pension he'll get every month.

Luckily, it will only take him 27 years to get his principal back, at which point he will be 87. Since the average life expectancy in society is 74 years, the difference of 13 years is your goal line, and you have to live past the average age of 13 years to get your principal back and make sure you don't lose out. If the retirement age is delayed in the future, then you'll need to live a little longer still.

The government has done its math so well that it knows you'll never get your money back for those 13 years, so where has that money gone?

One, to support the now retired elderly. The former retired workers, when they were young, did not pay the pension, were occupied by the state-owned enterprises, and then the reform of the state-owned enterprises, and did not pay much pension for these people, and then the state-owned enterprises directly closed down, but they retired according to the regulations, the state has to come up with the money for the old age, right? Where does that money come from, it's the young people at work (you and me) who pay. After all, they have already contributed to the country all their lives, and they are our parents, so we bite the bullet and are willing to pay!

Two, now retired civil servants, we all know, civil servants until now, are not paying pension insurance, and their wages have been rising, until the time of their retirement, they can take the full amount of the salary of the pension (Shanghai this side of the retirement can be given to get 80% of the current salary), take tens of thousands of pension of the official, but also in the minority, where does this money come from? Where does this money come from? Hey, it's also the money that you and I pay every month. Coordination of coordination, unified for them to raise. 2011, Guangzhou Municipal People's Congress Huang Ruilin broke the news that: "Division-level civil servants pension can get 7000-8000 yuan / month, managers of enterprises to pay their own pension of more than 1,000 yuan per month, but the retirement cap is also 1,700 yuan / month." Where can the average small temple feed such a loud-mouthed monk?

The trend around the world is to postpone the retirement age, and I'm sure it won't take more than a few years for China to do the same, and then you'll have to live past 90 to get your principal back, and that's even harder. How about that? Are you motivated to exercise now? But then again, if everyone lives longer, and the rules change by then, in short, paying into a pension, you have a 90% chance of not earning it back. I even think that the social security system should simply be abolished, we are not robbing the rich to help the poor, but robbing the poor to help the rich, the purpose of social security is to pay for the elderly and civil servants who used to be retired, it is not a labor benefit. According to Mercer Consulting in 2010, China's universal pension coverage rate was only 25 percent. This means that the impact of canceling social security is still limited, and if we continue to force universal coverage, the impact will be even greater than it is now when social security goes bankrupt in the future.