China New Observation|Heavy! Personal pension is here! 10 questions and 10 answers to help you understand
Zhongxin Finance, April 21 (Reporter Li Jinlei) The personal pension that has attracted much attention is here.
On April 21, the "Opinions of the General Office of the State Council on Promoting the Development of Individual Pensions" clarified matters such as the participation scope, system model, payment level, investment and receipt of individual pensions.
What is a personal pension?
In short, personal pension is the third pillar of my country's pension system.
At present, the first pillar of my country's endowment insurance system is the basic endowment insurance. The employee endowment insurance plus the endowment insurance for urban and rural residents has covered more than 1 billion people.
The second pillar is enterprise annuity and occupational annuity, which have covered more than 58 million people.
As the third pillar of the personal pension system, it has not been introduced before, which belongs to a shortcoming, and now this shortcoming has finally been filled.
Some people think that after the introduction of the personal pension, the current pension insurance will be replaced, and the future pension will depend on yourself. This is actually a misunderstanding.
pension infographic.
Source: Figure Worm Creative
Who can participate?
According to the opinion,
workers who participate in the basic pension insurance for urban employees or the basic pension insurance for urban and rural residents in China can participate in the individual pension system.
At present, more than 1 billion people have participated in the basic old-age insurance. Therefore, when the individual pension system is fully rolled out, these 1 billion people will be able to participate in the individual pension system.
It should be noted that individual pensions are not compulsory, but
voluntary.
How much to pay?
The opinions are clear, the
individual pension system shall be implemented with an individual account system, and the contributions shall be fully borne by the participants and shall be fully accumulated.
Participants establish personal pension accounts through the personal pension information management service platform.
Participants can pay a maximum of 12,000 yuan per year for personal pensions.
Personal pensions are completely paid by individuals, which is different from participating in employee endowment insurance in the unit. Paying employee endowment insurance in the unit is a joint contribution by the unit and the employee.
How to invest?
The funds in the personal pension fund account
are used to purchase financial products that meet the requirements of different investors, such as bank wealth management, savings deposits, commercial pension insurance, and public funds. Independent choice.
The financial institutions and financial products involved in the operation of individual pensions are determined by the relevant financial regulatory authorities and released to the public through information platforms and financial industry platforms.
How is it different from bank deposits?
After the comments were released, many netizens raised questions, what is the difference between personal pensions and my own bank deposits?
Zhang Yinghua, executive researcher of the World Social Security Research Center of the Chinese Academy of Social Sciences, told the "China New Observation" column of Zhongxin Finance and Economics that personal pensions are very different from personal deposits:
First, the personal pension has preferential personal income tax within a certain amount. Second, the investment products connected to individual pensions are all qualified products that have been selected, taking into account both safety and profitability; thirdly, individual pensions are managed by closed accounts, and generally do not allow early withdrawal, which is a "short-for-long" approach. asset management tools.
According to the opinions, the state formulates preferential tax policies to encourage qualified personnel to participate in the individual pension system and receive individual pensions in accordance with regulations.
Is this the domestic version of the 401(k)?
Zhang Yinghua explained that the 401(k) in the United States is actually a corporate annuity, which requires joint contributions by units and individuals, while individual pensions are entirely individual contributions, similar to IRAs (individual retirement accounts).
How to get personal pension?
According to the opinions,
participants who have reached the age of receiving basic pensions, have completely lost the ability to work, have gone abroad (territorial) to settle down, or have other circumstances that meet state regulations, can receive monthly, instalment or one-time payments after the information platform has verified the receiving conditions. Personal pensions, once determined, cannot be changed.
When receiving, the personal pension should be transferred from the personal pension fund account to the bank account of my social security card.
After a participant dies, the assets in his personal pension fund account can be inherited.
Elderly infographic.
Source: Visual China
What are the breakthroughs and highlights?
"Compared with the tax-deferred personal commercial pension insurance that started in 2018, this document has made many new breakthroughs." Zhang Yinghua believes that the qualified personal pension products are diversified to meet the diverse needs of participants; the supply of personal pension products Diversified subjects, all kinds of financial institutions can compete to join, greatly broadening the participation of market players; participants have diversified consumption choices, individuals can open accounts in various compliant institutions or channels and choose to buy personal pension products, The convenience of participation is greatly improved.
At the same time, Zhang Yinghua suggested that limited early withdrawals can be allowed under special circumstances (such as major illnesses, emergencies, necessary education and training, etc.), and provisions for tax rebates, returns, etc., can be made to increase the flexibility of account management.
What are the benefits?
Zhang Yinghua believes that personal pensions help to promote the construction of a multi-level and multi-pillar pension insurance system, which can enrich everyone's pension choices, and also have certain benefits for the capital market. First, it can increase the supply of long-term funds, and second, it is conducive to investment. long-term.
According to industry analysts, because personal pensions are mainly oriented towards investment needs with relatively low risk appetite and pursue long-term absolute returns, they have higher requirements for safety and robustness.
The vigorous development of personal pensions is expected to drive products with relatively stable long-term incremental capital allocation.
Can you buy it now?
According to the opinions, the Ministry of Human Resources and Social Security and the Ministry of Finance should strengthen guidance and coordination, and implement it step by step in light of the actual situation.
Select some cities for a one-year trial, and then gradually roll it out.
Zhang Yinghua said that the pilot period is one year, and the pilot should be closely followed, and the catalogue of qualified individual pension products and the conditions of qualified institutions should be announced in a timely manner.
(Finish)