The more individual pension contributions, the higher the pension, why set a ceiling of 12,000 yuan? The answer is here, and there are 3 reasons.
The principle of pension calculation in the mainland is "pay more and get more, pay more for a long time", and encourage everyone to pay more before retirement and receive more pensions after retirement. And in order to encourage more contributions and long contributions, a linked adjustment has also been adopted in the pension adjustment after retirement, and moderate care has been taken for people with long payment time and high pensions.
However, in order to prevent excessive disparities in the pension gap, the social security department has also set upper and lower limits on the pension payment level. For example, for those who participate in the basic old-age insurance for urban workers, if their average monthly wage is less than 60% of the local average monthly wage, they shall pay 60% of the average monthly wage of the local employee; if it exceeds 300% of the average wage of the local employee, 300% of the average monthly wage of the local employee shall be paid, and the excess part shall not be included in the payment wage base.
For example, the local average wage is 3,000 yuan per month, the insured's salary is 10,000 yuan per month, at this time, the social security premium borne by the individual cannot be paid according to the standard of 10,000 yuan, but can only be paid according to 3 times the local average wage, that is, 9,000 yuan. In the same way, if the insured's salary is 1500 yuan per month, and meets the local minimum wage standard, the insured cannot pay social security according to the payment base of 1500 yuan, but must pay social security premiums according to 60% of the local average wage, that is, 1800 yuan, which is the principle of "raising the low limit and limiting the high" of the pension. Therefore, the pension "overpayment and long payment" is not unlimited, but subject to certain restrictions.
The purpose of such restrictions is mainly threefold: one is to prevent the low level of payment of low-income people, resulting in too low pensions in the future; the second is to prevent the level of payment of high-income people from being too high, and the pension after retirement is too high, which widens the gap in pension income; third, as the largest welfare treatment given by the state to the people, fair treatment of everyone is the original intention of the social security policy, and the welfare benefits of the state cannot be enjoyed by a small number of people.
However, the pension system is not static, it is with the development of society and keep pace with the times, the purpose is to better adapt to the needs of society. With the intensification of the aging degree of the mainland, coupled with the improvement of living standards and medical care, the average life expectancy is getting longer and longer. The extension of life expectancy, of course, is a good thing, but it also brings some negative effects, such as the older the person, the lower the ability to work, and even the loss of the ability to take care of themselves, the need for special personnel to take care of, a variety of pension expenses have increased, the cost of pension is getting higher and higher.
The increase of the elderly, the state to the elderly pension will be more, coupled with the aging, the number of social security contributors correspondingly reduced, pension insurance income is difficult to maintain the huge expenditure of pension, completely rely on the pension to maintain the quality of life of retirees has become more and more difficult, there must be a moderate way to control this unfavorable situation, supplementary pension insurance, that is, enterprise annuity, played a certain role in supplementing the pension.
Nowadays, another big positive pension treatment has also come, the state has introduced a personal pension system, encouraging eligible insured persons to participate in personal pensions, as long as they participate in the basic old-age insurance for urban workers and the basic old-age insurance for urban and rural residents, they can participate in personal pensions, and after retirement, they can receive more pensions. The insured can receive it on a monthly basis, in installments, or in one lump sum. If deceased, the personal pension can be inherited.
Unlike flexible employees who participate in the social security contributions of employees and only 40% of the amount of personal contributions are credited to the personal pension account, after participating in the personal pension, all the personal pensions paid by individuals are included in the personal pension account, and they can manage their own financial management in accordance with the scope of wealth management products delimited by the state. According to experts' calculations, if from now on, the annual payment of 12,000 yuan, 20 years later retirement, the personal pension account with the cost or will be as high as 570,000 yuan, excluding the personal contribution principal of 240,000 yuan, the income is as high as 330,000 yuan. Of course, this is only an estimate based on the current return of the public fund, and does not mean that the future return must be at this level, and it is normal to be below or above this level. If it is estimated according to the average income of the employee's social security personal pension in the past 5 years, after 20 years, the amount of the personal pension account is also about 500,000 yuan. No matter who, seeing such a benefit, it is inevitable to have the impulse to buy a personal pension.
As with the pension calculation principle of basic endowment insurance, the higher the personal pension, the longer the payment time, the higher the personal pension received by retirement, since the pension income is so high, then why set a personal pension contribution ceiling of 12,000 yuan? There are three main reasons:
First, the personal pension only plays a supplementary role in the pension. Personal pension only plays a role in supplementing the pension, everyone's pension income after retirement still depends on the basic pension of the individual, that is to say, the personal pension can not occupy the upper hand of the basic pension, so that the basic pension, enterprise annuity and personal pension are generally maintained at a reasonable level, so the insured cannot be allowed to pay at will, and the upper limit should be controlled.
Second, it is conducive to the management of personal pensions. From the aspect of system design, not only to consider the perfection, but also to consider the operability of the system, if the system design is too complex and changeable, it will undoubtedly increase the cost of management, on the surface the system is perfect, but in practice lack of operability. Personal pension is aimed at ordinary people, the simpler the payment, the easier it is to promote, everyone can calculate the account clearly, the stronger the willingness to participate in insurance.
Third, there is room for future adjustments to personal pensions. Set a ceiling of 12,000 yuan, only temporarily, with the development of the economy, the increase in people's disposable income, do not rule out the possibility of gradually increasing the upper limit of payment, to better meet the needs of the people for supplementary pension.
In summary, although the mainland's pension insurance advocates paying more and paying more, it also sets the upper and lower limits of payment, the purpose is to make the pension payment more fair, and the pension income gap will not be too disparity. In the same way, as a personal pension that supplements the role of the pension, the temporary upper limit of 12,000 yuan is set to allow it to play the role of supplementary pension, rather than letting it dominate and seize the upper hand of the pension.