Expert interviewed: Professor Yang Yifan, vice president of Southwest Jiaotong University International Academy of Aging
< span>Global Times health client reporter Bian Lei
On November 25, the Ministry of Human Resources and Social Security announced the implementation of individual pensions, and announced at the same time List of 36 leading cities or regions. In this regard, Yang Yifan, deputy dean and professor of the International Academy of Aging Sciences of Southwest Jiaotong University, said in an interview with a reporter from the “Global Times Health Client” that the elderly are not the target group for the design of the personal pension system, and it is recommended that the income is relatively high and flexible employment Or the three groups of people who do not have high requirements for capital liquidity participate in personal pensions.
What is a personal pension?
Personal pension refers to government policy support, individual voluntary participation, market-oriented operation, and realization of pension insurance supplement functional system. Personal pensions implement a personal account system, and the payment is entirely borne by the individual, who independently chooses to purchase financial products such as savings deposits, wealth management products, commercial pension insurance, and public offering funds that meet the regulations, implements full accumulation, and enjoys preferential tax policies in accordance with relevant state regulations.
Yang Yifan interpreted, “Personal pensions are different from ordinary deposits and wealth management products.” First of all, personal pensions are more financial in nature. Individual pension participants can purchase financial products that comply with national regulations, and the products do not need to be purchased by themselves, and can be managed by selected institutions. However, bank deposits are partial to savings, and the interest rate is relatively low. Second, personal pensions cannot be withdrawn at any time. Only when the participants meet certain conditions can they withdraw money from their personal pension, and the investment income obtained will be re-credited into their personal pension account to participate in a new round of financial management and investment. However, bank deposits have demand deposits and fixed deposits. The money deposited in demand deposits can be withdrawn at any time, and the deposits can also be withdrawn at maturity. Finally, personal pensions are tax-advantaged. In the payment link, the participants’ contributions to the personal pension fund account will be deducted from the comprehensive income or operating income according to the annual limit standard of 12,000 yuan; in the investment link, the investment income included in the personal pension fund account will not be collected for the time being. Income tax: In the receiving process, the accumulated personal pension is not included in the annual personal income tax payment, and the personal income tax is paid separately at a tax rate of 3%.
Why set up a personal pension system?
Yang Yifan said that there are three reasons why the country promotes personal pensions:
First, improve the national pension system. my country has always been a “three-pillar” pension system: the first pillar is basic pension insurance, the second pillar is enterprise annuity and occupational annuity, and the third pillar is savings-type commercial pension insurance. In order to improve the stability of the pension system, improving the “three-pillar” pension system has always been the key construction content of the country. In comparison, the development of the third pillar is relatively weak and the coverage rate is low, and the personal pension belongs to the third pillar, which plays an important role in improving the “three pillars” pension system.
Second, strengthen investment areas. In our country, many people are keen to invest in fixed assets, which does not give full play to the leading role of funds. Personal pensions can gather residents’ assets for long-term allocation to build strong investment institutions, provide more financial support to the real economy, drive economic development, provide entrepreneurs with a better entrepreneurial environment, and create more jobs.
Third, improve people’s retirement benefits. In fact, many people have a vague concept of the amount of their pension. Internationally, the standard of living of people after retirement is usually judged by the ratio between the pension after retirement and the salary level before retirement. This ratio is called the replacement rate. Generally speaking, if the replacement rate is greater than 70%, it means that the existing living standard before retirement can be maintained; if it is 60%~70%, it means that the basic living standard can be maintained; if it is lower than 50%, it means that the living standard will decline compared with before retirement . At present, my country’s average replacement rate is less than 50%. Resident pensions and employee pensions provide basic living security for low- and middle-income groups, but if they want to continue to improve their retirement levels, there was no favorable way before. Personal pensions provide such a way to play a very good supplementary role in maintaining the standard of living before retirement in the future.
Who can attend? What are the benefits?
Participants of personal pensions should be participating in basic pension insurance for urban employees or urban and rural residents in China Workers with basic pension insurance. At present, qualified people in the leading cities (regions) can voluntarily participate in personal pensions.
Yang Yifan said that the elderly are not the target group in the design of the personal pension system. high crowd. Personal pensions are supplementary to basic pensions and are not mandatory. People with higher incomes can try to participate. At present, the upper limit of individual pension contributions in my country is 12,000 yuan per year. If you have a high income, you can pay more, and if you have a low income, you can pay less. The second category is flexible employment personnel. Now, most of these people participate in the flexible employment pension insurance in their personal capacity, but in fact this kind of insurance is similar to the personal pension, so they can also choose to try the personal pension. third category,People who do not require high liquidity. Personal pensions are managed in a closed manner. Once participating, the money cannot be withdrawn at will. If the public does not have high requirements for capital liquidity, they can also try to participate.
“There is no doubt that personal pensions will bring benefits to the public.” Yang Yifan said that the personal pension system is based on basic pensions. It can add another accumulation, so that people can have more protection after retirement. At the same time, this can help individuals rationally plan their retirement funds, and it can also allow participants to enjoy tax incentives.
How to participate, pay and receive?
Participation: According to system regulations, participants need to open two accounts: personal pension account and personal Pension fund account, purchase related financial products according to individual wishes. To open a personal pension account, it should be opened on the information platform through the national social insurance public service platform, the national human resources and social security government service platform, electronic social security card, palm 12333APP and other national unified online service portals or commercial bank channels; To open a personal pension fund account, you need to choose a qualified commercial bank to open or designate your only personal pension fund account, or you can designate it through other qualified personal pension product sales agencies.
Payment: The upper limit of the annual personal pension payment of participants is 12,000 yuan; It is accumulated in a natural year and recalculated in the next year.
Receipt: Personal pension fund account is closed and operated, and participants who meet any of the following conditions can receive monthly, installment or one-off personal pension. When a participant receives personal pension, the commercial bank shall verify the participant’s eligibility for receiving the pension through the information platform, and transfer the funds to the participant’s personal social security card bank account. Conditions include: 1. Reaching the age for receiving basic pensions; 2. Completely incapable of working; 3. Going abroad (territory) to settle down; 4. Other circumstances stipulated by the state.
Are there any risks involved?
Participants decide independently, the type and amount of personal pension fund account funds to purchase personal pension products. Sales agencies of personal pension products shall follow the principle of “sales appropriateness” and give good risk warnings, and shall not actively recommend personal pension products that exceed their risk tolerance to individuals. If the participant dies, the assets in his personal pension fund account can be inherited. If the social security card of the participant is canceled due to reasons such as going abroad (territory) to settle or death, the funds in the personal pension fund account can be transferred to the fund account designated by the participant or his heir.
In Yang Yifan’s view, “Not all personal pension financial products are savings products, but some are investment products, and investment requires risk awareness. “Individuals should adhere to the investment philosophy of “long-term investment with long-term returns and prudent investment with reasonable returns”, and choose financial products reasonably based on personal income levels, expectations for old age life, and preference for investment risks. “Any kind of investment will face risk fluctuations,” said Yang Yifan. As an investment-type system, personal pensions are dependent on factors such as the level of economic development and market fluctuations. “. ▲
Source: Life Times