Recently, the Ministry of Human Resources and Social Security and the Ministry of Finance issued the "Notice on Adjusting the Basic Pension for Retired Personnel in 2024", which clarified that in 2024, the basic pension for retired personnel will increase by 3%.

This is the 20th consecutive increase in my country's social security basic pension.

The increase in pensions has attracted a lot of attention. Retired personnel have put their minds at ease. In contrast, the reaction of young people is more lively. Many people say it is too heartbreaking:

The salary has not increased, and some have even been reduced. There are also many people who are unemployed;

The employed are in a panic of unemployment, and they may be "optimized" one day

What's more exciting is that wages have been averaged, and the proportion of social security contributions has increased year by year, and the extra money paid must ensure the increase in pensions...

Why do we keep saying that the pension gap is getting bigger and bigger, but it will still increase? Let's take a look at some issues that everyone is generally concerned about.

The pension has "increased" and "decreased"

From the facts, my country's pensions are rising every year, which is mainly related to factors such as the growth rate of the average social wage, the increase in prices, the pension surplus, and the speed of economic development.

The average social wage is rising every year, which has led to an increase in the contribution base. If the pension level is not raised, more and more people may give up paying social security;

Prices are rising. If the pensions of retirees are not adjusted, the basic quality of life of the elderly may not be guaranteed;

There is a surplus of pensions. Overall, my country's pension surplus is still sufficient to support the increase of pensions.

However, although the pension has increased this year, the increase has decreased again. Last year's increase was 3.8%, and this year's increase has shrunk again, only 3%, the lowest increase in recent years.

Who can enjoy more pensions?

First of all, the higher the contribution base and the longer the payment period, the more it will increase. In other words, the more you pay, the more you get, and the longer you pay, the more you get. Of course, 3% is the overall adjustment level given by the Ministry of Human Resources and Social Security. The final details and implementation will be formulated and reported by each province, autonomous region, and municipality.

Secondly, the elderly who meet the requirements will receive preferential policies. Generally speaking, elderly people aged 70, 75, 80 and above will have additional benefits in this pension increase, depending on the age group and the degree of inclination set by each province.

In addition, the areas with high social average wage levels will have more pensions. The pensions of most provinces and cities are linked to the local social average wage. In areas with high social average wages, the level of pensions is also relatively high.

It should be noted that not all retired elderly people will have their pensions increased. This pension increase is for employees who have completed retirement procedures in accordance with regulations before the end of 2023.

Retired people who retired after January 1 this year, who are residents of the elderly, and who have not been certified are not within the scope of the adjustment population for this pension increase.

How much pension money can the post-80s and post-90s retirees receive?

When it comes to the issue of pensions, we have to first understand the source of our country's social security pensions.

Pay-as-you-go system

National fiscal subsidies

State-owned capital to enrich social security funds

Among them, the pay-as-you-go system is the main force of pensions, and the other two are used to make up for the shortfall.

What is the pay-as-you-go system?

Simply put, it is the social security pension insurance paid by the current working population (young people) as the pension of retired elderly people.

The social security pension we pay is divided into two parts. 8% of the personal contribution base goes into the personal account, which belongs to ourselves; 12% of the contribution base goes into the pooling account. Some units may pay 16%, which will be allocated as pensions and has nothing to do with us.

There is a very vivid metaphor that the pension is a big pool. Young people add water and the elderly use water.

However, the pressure on the pension pool is getting bigger and bigger. On the one hand, the aging trend is getting worse and worse, and the pay-as-you-go system will become more and more weak; on the other hand, the fertility rate is declining, and the low birth rate is becoming more and more obvious. There are fewer and fewer people paying money, and more and more people receiving money. Whether the pension can be paid on time and in full in the future is a question worth pondering.

That is, regardless of the above issues, according to the existing regulations, we can only get the social security pension if we have paid at least 15 years of pension insurance when we retire.

If you have paid social security pension insurance for 15 years, how much money can you receive every month after retirement?

Formula for calculating pension:

Monthly pension = personal account pension + pooling account pension

Personal account pension = total pension paid by yourself ÷ number of payment months (139 months for retirement at the age of 60)

Pooling account pension = (average monthly salary of employees in the province last year + average monthly indexed payment salary of the individual) ÷ ​​2 × payment years × 1%

A simple example:

Xiao Xin retired at the age of 60. He paid social security for 15 years before retirement, and the balance of his personal account was 56,000 yuan. Assuming that the local average salary at retirement is 5,800 yuan, and Xiao Xin's salary is always consistent with the local average salary, then Xiao Xin's average payment index is equal to 1.

At this time, the monthly basic pension = (5800+5800) ÷ 2 × 15 × 1% = 870 yuan

Personal account pension = 56000 ÷ 139 = 402.88 yuan

After Xiaoxin retires, the monthly pension = basic pension + personal account pension = 870 + 402.88 = 1272.88 yuan.

Therefore, if you only pay for 15 years of social security, most people’s pension after retirement may really only be this number... (The above example is for reference only. Everyone’s pension varies according to the local wage level, payment years, and payment level)

Do you think this amount is enough for retirement?

The meaning of retirement is not as simple as having three meals a day. Diseases and accidents are highly likely to occur in old age. If you have to have enough food and pay for medical treatment, it is difficult to be enough based on the current pension level!

So recognize the reality and plan ahead to have the last laugh.

1. Social security must be paid. Even if there is no company, you can pay the lowest level and extend the payment period. Because the principle followed by our country's social security pension has always been "the more you pay, the more you get, and the longer you pay, the more you get." The payment base may not be easy to increase, but the payment period is still relatively easy to control. Paying a few hundred yuan a year for 20 to 30 years is very cost-effective.

2. If you have the ability, you can supplement commercial pension insurance and hold the initiative of pension firmly in your own hands.

The advantages of commercial pension insurance are obvious:

① How much money you can receive, when you can receive it, whether it is annually or monthly, are all clear, and will not change with policy changes after insurance;

② How long you live, how long you receive, the longer you live, the more you receive, it is a continuous cash flow;

③ After insurance, the benefits are locked, which is particularly valuable in the current environment of falling interest rates. Even if the future interest rate is negative, it still has to be paid at 3% or even higher at the time of insurance.

While you are still young and strong, prepare solutions for future personal pension problems and possible pension risks in the family in advance. Will life be more calm and secure? !