How much is the accumulated balance of China's pension insurance fund?

By the end of 2020, the accumulated balance of China's pension insurance fund will be 4.5 trillion yuan, with the overall income exceeding the expenditure, which is able to guarantee that the basic pensions of the retirees will be paid in full and on time.

For individual places where the current pension income is not enough to cover expenditure, the relevant departments have taken the following approaches:

One is to expand the scale of centralized transfer. Starting in 2018, China has established a central transfer system for pension funds, which is used to equalize the fund burden between regions. This year, the size of the central transfer fund reached 930 billion yuan, and the central and western regions and old industrial base provinces benefited more than 215 billion yuan, which to a certain extent alleviated the pressure on the balance of payments and revenues in difficult areas.

The second is the steady and orderly promotion of national coordination. On the basis of the full completion of provincial-level coordination of basic pension insurance, we will steadily and orderly promote national coordination, improve the mechanism for sharing responsibility for pension insurance between the central government and local governments, and clarify the responsibility for pension insurance payments at all levels of finance, so as to continually enhance the sustainability of the system.

Thirdly, the level of treatment should be reasonably determined. Sound basic pension insurance financing and treatment adjustment mechanism, comprehensively consider the price, wage growth and other factors, and reasonably determine the level of pension treatment adjustment, so that hundreds of millions of people have a sense of security in their old age.

The probability that pensions will continue to rise next year:

First, the law guarantees that pensions will be adjusted

According to Article 18 of the Social Insurance Law, the state establishes a mechanism for normal adjustments to basic pensions. According to the growth of the average wage of employees and price increases, the level of basic pension insurance benefits will be raised in due course. Prices and wage levels are the core factors in determining whether or not to adjust pensions upward.

According to the National Bureau of Statistics, in the first half of 2021, consumer prices (CPI) rose by a cumulative total of 0.5% year-on-year, with an overall moderate upward trend, but no matter how prices rise will lead to a decline in the purchasing power of money, the cost of living for retired seniors increased, and if you want to maintain the current quality of life of the elderly, you should adjust the pension level upward.

From the income side, the first half of the country's per capita disposable income of 17,642 yuan, a nominal increase of 12.6 percent. Deducting the effect of price factors, real growth of 12%, per capita income level increased significantly, on the one hand, means that the base of social security contributions increased, the pension fund account will be more abundant; on the other hand, the retired elderly are also once for the construction of the economy made a great contribution to the workers, their income level should be adjusted in tandem with the incumbent workers.

Second, China's economic recovery is in good shape

The Ministry of Human Resources and Social Security mentioned in its development plan for the next five years that it will promote the linkage adjustment of the level of social insurance benefits with economic and social development, and will take into account factors such as changes in prices, the growth of the average salary of employees, the fund's affordability, and the state of its financial resources.

Which financial situation is related to China's economic growth rate, according to data released by the National Bureau of Statistics, China's GDP in the first quarter of this year increased by 18.3 percent year-on-year, China's GDP in the second quarter increased by 7.9 percent year-on-year, and in the first half of the year, the GDP increased by 12.7 percent year-on-year. China's economy has been recovering steadily, and the central government's ability to pay has increased, which is conducive to guaranteeing the continued upward adjustment of pensions.

References to China.org.cn - Ministry of Finance: by the end of 2020, China's pension fund will have a cumulative balance of 4.5 trillion yuan