Is it necessary to open an individual pension account?

Personal pension is a system with government policy support, individual voluntary participation, market-oriented operation and supplementary functions of pension insurance.

Personal pension is based on personal account system, and the payment is entirely borne by the insured himself. Choose to buy financial products (hereinafter referred to as personal pension products) such as savings deposits, wealth management products, commercial endowment insurance and Public Offering of Fund, and enjoy preferential tax policies in accordance with relevant state regulations. The insured person of individual pension can enjoy individual pension according to regulations on the basis of receiving basic pension.

2. Who can participate in the individual pension?

Participants in individual pensions should be laborers who participate in the basic old-age insurance for urban workers or the basic old-age insurance for urban and rural residents in China.

As a pioneer city, employees who participate in Shanghai's basic old-age insurance for urban workers or basic old-age insurance for urban and rural residents can participate in personal pensions from 2022.

3. What accounts need to be opened to participate in personal pension, and how to open an account?

To participate in individual pension, you need to open an individual pension account and an individual pension fund account.

The insured who participates in individual pension shall open an individual pension account on the information platform through the unified national online service portal (national social insurance public service platform, national human resources and social security government service platform, electronic social security card, handheld 12333APP, etc.). ) or commercial banks determined by China Banking Regulatory Commission.

After that, the participants of individual pension choose qualified commercial banks to open or designate their only individual pension fund account. Personal pension fund account and personal pension account are bound.

Participants can open these two accounts at one time through commercial bank channels.

4. What's the difference between an individual pension account and an individual pension fund account?

Personal pension account is used to register and manage personal identity information, which is associated with the basic old-age insurance and records the payment, investment, collection, deduction and payment of personal income tax of personal pension, which is the basis for the insured to participate in personal pension and enjoy preferential tax policies.

As a special special fund account, the personal pension fund account is managed with reference to Class II households under the personal RMB bank settlement account. Individual pension fund accounts are bound with individual pension accounts to provide participants with services such as fund depository, payment quota registration, personal pension product investment, personal pension payment, personal income tax payment, fund and related rights and interests information inquiry.

5. How to pay personal pension?

Participants can voluntarily pay monthly, installment or yearly in the natural year. At present, the upper limit of individual pension payment is 12000 yuan/year.

6. How to use the funds in the personal pension fund account, and what is the difference with deposits?

The funds in the personal pension fund account can independently purchase savings deposits, wealth management products, commercial pension insurance, Public Offering of Fund and other personal pension products recognized by the China Banking Regulatory Commission and the China Securities Regulatory Commission.

Participants independently decide the variety and amount of personal pension products purchased from personal pension fund accounts. Personal pension product sales institutions shall, on the principle of "sales appropriateness", do a good job of risk warning, and shall not take the initiative to introduce personal pension products beyond their risk tolerance to participants.

Bank savings deposit is a kind of personal pension product. Compared with general financial products, personal pension products have four attributes: safe operation, stable maturity, standardized target and long-term preservation, so as to better protect the lives of retirees.