How much does length of service play in pension?

Length of service is one of the important factors in pension calculation. Generally speaking, the longer the length of service, the higher the pension you can get.

China's current pension system is based on the number of years and the amount of individual contributions. Among them, the length of service involved in the individual payment period is a very important factor. According to China's "Social Insurance Law", individuals can accumulate one year's payment period for each year's social insurance premium. Usually, the longer the payment period, the higher the pension will be. Specifically, in the calculation method of basic old-age insurance for urban workers in China, the base of pension is calculated with reference to my payment period and average wage level. At the same time, the law also stipulates the minimum and maximum receiving standards to ensure the basic living standard of retirees. In addition, we need to pay attention to the differences of retirement systems in different industries. For example, the calculation method of pensions for civil servants and institutions is different from the basic old-age insurance for urban workers, and some enterprises also have their own pension systems.

Is length of service the only factor affecting pension? No, in addition to the length of service, there are other factors in the calculation of pension, such as the amount of individual contributions, the number of years received, the average wage level and so on. In addition, there may be differences in pension calculation methods in different industries and different units. Generally speaking, the length of service is one of the important factors that affect the calculation and payment of pension, but it is not the only factor.

Length of service is one of the important factors in pension calculation, but it is not the only factor. Facing the complicated calculation method of pension, we need to read the legal provisions carefully, plan our pension rationally and consult professionals in time.

Legal basis:

Article 17 of the Social Insurance Law of People's Republic of China (PRC) implements a personal account system for basic old-age insurance, combining individual contributions with government subsidies. The period and amount of individual contributions are the main basis for determining the accumulated amount of individual accounts.