China News Service, December 3rd (Reporter Li Jinlei) There are three new options for pensions: personal pensions, commercial pensions, and specific pension savings. However, many people may not be able to tell the difference. What is the connection between these three and difference?
How should different groups of people choose?
are part of the third pillar
Dong Ximiao, chief researcher of China Merchants Union Finance and part-time researcher of Fudan University Financial Research Institute, told Zhongxin Finance that personal pensions, commercial pensions, and specific pension savings are actually part of the third pillar of the pension insurance system.
Among them, the first pillar is the basic pension insurance, which is the main part, and currently covers 1.04 billion people.
The second pillar is enterprise annuity and occupational annuity. By the end of 2021, more than 70 million employees have participated in the two annuities.
The third pillar includes personal pensions and other personal commercial pension financial services.
different concept
From a conceptual point of view, personal pension is an endowment insurance system supported by government policies, voluntarily participated by individuals, and market-oriented operation, which realizes the supplementary function of endowment insurance.
Commercial pension is a pension financial business that individuals voluntarily participate in, and operates market-oriented and legalized. Pension insurance companies provide one-stop services including account management, planning consultants, product purchases, and long-term payment.
Specific pension savings products are fixed-term savings deposits, and the interest rate has advantages over general deposit products.
Data map.
Photo by Zhang Yun
The scope of the experiment is different
Pioneering cities (regions) for personal pensions include 36 cities, namely Beijing, Tianjin, Shijiazhuang, Xiongan New Area, Jincheng, Hohhot, Shenyang, Dalian, Changchun, Harbin, Shanghai, and Suzhou , Hangzhou, Ningbo, Hefei, Fujian, Nanchang, Qingdao, Dongying, Zhengzhou, Wuhan, Changsha, Guangzhou, Shenzhen, Nanning, Haikou, Chongqing, Chengdu, Guiyang City, Yuxi City, Lhasa City, Xi'an City, Qingyang City, Xining City, Yinchuan City, Urumqi City.
The commercial pension pilot areas are 10 provinces (cities) including Beijing, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Henan, Guangdong, Sichuan, and Shaanxi.
The four pension insurance companies participating in the pilot program are the Chinese People's Pension Insurance Co., Ltd., China Life Pension Insurance Co., Ltd., Taiping Pension Insurance Co., Ltd. and National Pension Insurance Co., Ltd.
The pilot program starts from January 1, 2023, and the pilot period is tentatively scheduled for one year.
For specific pension savings products, the four large banks of Industry, Agriculture, China, and Construction will carry out specific pension savings pilots in Hefei, Guangzhou, Chengdu, Xi'an and Qingdao. The pilot scale of a single bank shall not exceed 10 billion yuan, and the pilot period shall be one year.
The purchase threshold is different
Dong Ximiao pointed out that personal pensions, commercial pensions, and specific pension savings are all voluntary products to participate in. Among them, commercial pensions have less restrictions on the purchase threshold.
According to regulations, to participate in personal pensions, you must be workers who participate in the basic endowment insurance for urban employees or the basic endowment insurance for urban and rural residents in China.
To participate in a commercial pension, you must be at least 18 years old.
Individuals who have reached the age of 18 may sign commercial pension business-related contracts with pension insurance companies.
In terms of specific pension savings, from the pilot point of view, it is required to be 35 years old to buy.
For example, ICBC has made it clear that the age of the customer must be over 35 years old, and the actual age + product period must be greater than or equal to 55 (the whole deposit and zero withdrawal can only be deposited at the age of 55); The certificate-issuing authority is a domestic citizen aged 35 or over in the sales area, and the type of term selected must meet the specific requirements of the customer who holds the expired product and is over the age of 55.
different quota
Among them, personal pensions and specific pension savings have purchase limits.
The upper limit of the individual pension participant's annual payment amount is 12,000 yuan, which shall not exceed the upper limit of the payment amount.
The upper limit of the payment amount will be adjusted in due course according to factors such as the level of economic and social development and the development of the multi-level pension insurance system.
In terms of specific pension savings, the deposit principal limit of depositors' specific pension savings products in a single pilot bank is 500,000 yuan.
Specific pension savings products include three types: lump sum deposit and withdrawal, zero deposit and lump sum withdrawal, and lump sum deposit and zero withdrawal, and the product term is divided into four grades of 5 years, 10 years, 15 years and 20 years.
Different preferential policies
Individuals participating in pensions enjoy preferential tax policies, and the contributors are given a pre-tax deduction of 12,000 yuan per year, investment income is temporarily exempt from taxation, and the actual tax burden on income received is reduced from 7.5% to 3%.
Contributors will get real tax-saving benefits.
For example: Assuming that the taxpayer’s current applicable tax rate is 10%, and paying 12,000 yuan per year, the individual tax can be reduced by 12,000×(10%-3%)=840 yuan per year. If the taxpayer pays for 30 years, he can save 25,200 yuan in taxes.
Individuals who participate in the commercial pension business do not enjoy the relevant preferential policies for personal income tax.
The interest rates on certain retirement savings products are slightly higher than the listed rates on five-year term deposits at large banks.
Taking ICBC as an example, every five years is an interest-bearing cycle for specific pension savings products, and the interest rate level remains unchanged during the same interest-bearing cycle.
Lump sum deposit and withdrawal: 4.0% in Guangzhou, Chengdu and Xi’an, 3.5% in Qingdao and Hefei; zero deposit and lump sum withdrawal: 2.25% in Guangzhou, Chengdu and Xi’an, 2.05% in Qingdao and Hefei; lump sum and zero withdrawal: Guangzhou , Chengdu, and Xi'an are 2.25%, and Qingdao and Hefei are 2.05%.
Withdrawal conditions are different
Individual pension fund accounts are closed and operated, and participants who meet any of the following conditions can receive personal pensions on a monthly, installment or one-off basis: (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.
Commercial pensions provide a variety of receiving arrangements such as fixed installments, regular installments, and long-term (lifetime) annuities.
In principle, specific pension savings can only be withdrawn when they are 55 years old.
How should different groups of people choose?
The characteristics of the three types of products are different, and residents can choose according to their own risk preferences and liquidity needs.
The personal pension fund account is used to purchase financial products such as bank wealth management, savings deposits, commercial pension insurance, and public funds that meet the regulations.
Among them, savings deposits issued by commercial banks that provide personal pension services (including specific pension savings, excluding other specific purpose savings) can be included in the scope of purchase.
According to expert analysis, personal pensions can enjoy personal tax benefits, and residents with higher personal tax rates can consider participating in personal pensions to save personal tax.
In addition, personal pension investment products are relatively more stable, but they are not completely risk-free.
Consider your age and adjust your investment structure. For example, you can allocate more equity products when you are young, and gradually increase your allocation of fixed-income products when you approach retirement age.
Commercial pensions establish a dual-account combination of locked-in pension accounts and continuous pension accounts, taking into account the dual needs of locked-in pension funds for long-term investment and individual liquidity at different ages.
Regarding specific pension savings, Dong Ximiao said that it takes into account both inclusiveness and retirement benefits. The product has a long term, stable income, and guaranteed principal and interest. It can lock in a relatively high interest rate during the downward cycle of interest rates, which can meet low risk appetite and liquidity requirements. The pension needs of residents who are not high and pursue fixed income.
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