Pension investment
With the aging of the population in mainland China, pension wealth management has become one of the important ways to improve people's livelihood and well-being. On May 25, 2023, the 21st Century Capital Research Institute and China Europe Fund released the "Better Retirement Life" Insight Report, which shows that the current penetration rate of urban residents in mainland China is good, and more than 60% of the survey respondents have pension plans.
How do young people plan to run a good "marathon" for retirement?
Save ahead for future retirement
In 2023, Yan Ya, who is a freelancer, will deposit 12,000 yuan into the personal pension accounts of herself and her lover. How much money will be needed for the future pension, 34-year-old Yan Ya herself does not know. On social platforms, there are not many young people like Yan Ya who plan to retire in advance, and they "enter the game" in advance and plan for the future pension as early as possible.
"I earn project commissions, and my income is flexible, and I don't have a company to help me pay five insurances and one housing fund, so I can only think more than others. Yan Ya said that 3 years ago, the bank account manager recommended a pension financial product, and after depositing 50,000 yuan for 3 consecutive years, he began to return a small amount of money to the personal account in the fourth year.
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"At that time, I bought two sets at the beginning, and I have begun to return the money this year, but I feel that this money is a drop in the bucket compared with the future pension. Yan Ya said frankly that although there is a fixed bank wealth management manager service, due to the lack of relevant financial knowledge, she does not have the ability to identify the advantages and disadvantages of financial investment products.
According to the "China Residents' Pension Wealth Management Development Report (2023)" released by China CITIC Bank, China Asset Management and Fidelity Fund, respondents believe that they need to save an average of 2.356 million yuan before retirement to meet their pension needs after retirement.
In addition to residents' personal savings, the mainland's national pension system includes "three pillars," namely, basic old-age insurance, enterprise annuity, occupational pension, personal savings old-age insurance, and commercial old-age insurance.
Wang Bin, a "post-80s" guy, is a native of Xi'an, works in a state-owned scientific research institute, and is still a bachelor. Wang Bin has studied finance and is one of the few people of his age who has the "three pillars" of retirement. Even so, he still admitted that he was a little unconfident in the face of the future of living alone.
There are many young people like Yan Ya and Wang Bin who plan their future retirement in advance. Most of the young people surveyed said that although they wanted to cope with their retirement needs as soon as possible, their income could not support their retirement planning.
Chen Bingzheng, director of the China Insurance and Risk Management Research Center at Tsinghua University of Economics and Management, said in his interpretation of the "2023 China Residents' Retirement Readiness Index Survey Report" that the overall income level of young people is relatively low, and they need to use a considerable part of their limited income to maintain the current quality of life, resulting in most young people only saving a relatively small part of their income for future retirement.
It is necessary to do a good job in the "combination punch" of pension financial products
The Central Financial Work Conference held in October 2023 pointed out that it is necessary to do a good job in five major articles: science and technology finance, green finance, inclusive finance, pension finance, and digital finance. This is the first time that pension finance has been formally proposed in the central meeting.
Previously, in April 2022, the General Office of the State Council issued the "Opinions on Promoting the Development of Personal Pensions", officially proposing a personal pension system. On November 25 of the same year, the Ministry of Human Resources and Social Security announced the launch of the personal pension system. After opening a personal pension fund account, you can pay to the fund account, and the funds in the account can be used to purchase personal pension products, including savings deposits, wealth management products, commercial pension insurance and public funds.
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On the occasion of the first anniversary of the implementation of the personal pension system, the reporter came to the Wenjing Road branch of China Merchants Bank and met Liang Mi, a citizen of Xi'an who came to consult the personal pension account. She said: "The service staff told me that people who participate in the basic pension social security can deposit no more than 12,000 yuan into the personal pension account, which can be temporarily tax-exempt, and then pay back taxes at the rate of 3% when they retire." ”
"My salary card is from China Merchants Bank, and I saw the module of 'pension finance' on my mobile phone, so I came to consult. Liang Mi said that when she first joined the work two years ago, her mother bought an insurance product for herself from Chinese Life, investing 10,000 yuan a year and returning it to the cash account after five years. "My mother asked me to see if I could continue to buy insurance after the money was put into my personal pension account. ”
According to the data disclosed by Chinese Life Pension Insurance Company, as of December 25, 2023, the stock scale of commercial pension business of Chinese Life Pension Insurance Company is 6 billion yuan, and the number of effective accounts exceeds 310,000. "One of the advantages of insurance is that it is mandatory to save, and it is an opportunity for the 'moonlight people' to force money to save money. Sun Xia, account manager of Chinese Life Xi'an Division, said that for personal pension products, the company provides a total of 8 products such as target date type, term principal protection type, fixed income type, liquidity management type, etc., which can meet the different pension needs of customer groups through the combination of different products.
How to invest in personal pension financial products
"Young people live as delivery riders in order to save money", "Young people only go to B1 and B2 when they go to shopping malls"...... In 2023, hot searches about young people's consumption views will frequently appear on the main Weibo list, and throttling has become the main way for some young people to avoid risks.
According to the 2022 China Pension Outlook Survey Report released by Fidelity International and Ant Fortune, the proportion of pension savings in income has been on the rise for three consecutive years. Especially among the 18 to 34-year-olds, the average monthly amount spent on pension investment has increased from 1,624 yuan in 2021 to 1,940 yuan in 2022.
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How much money is enough for retirement?
"How much pension reserves are needed, in the final analysis, depends on the needs of the individual, and the gap between the funds to meet the basic living and comfortable pension needs is not small. Cao Dong, a professor at the School of Economics and Management of Xidian University, explained that the funds to meet the comfort of the elderly should not only ensure a comfortable standard of living, but also take care of various expenses such as medical care, leisure, tourism, and nursing homes.
Is it better to "short-term" or "long-term" personal pension financial products?
"To make clear the difference between pension and other investments, the investment goal of pension is clear, that is, to achieve asset appreciation, stable income, so long-term, stable investment is more suitable for pension funds with a long investment cycle. Cao Dong suggested choosing a diversified asset allocation, "If conditions permit, do not put eggs in the same basket, which can reduce the impact of fluctuations of a particular asset on the overall portfolio, improve its stability and risk resistance, you can refer to the S&P family assets quadrant chart." ”
The "S&P Household Assets Quadrant" is recognized as the most stable and reasonable way to allocate family assets: that is, the family income is divided into 4 equal parts, 30% is used for stable investment and financial management, mainly for fixed deposits or bank wealth management products, 40% is used for stable and low-risk investments, such as fund trusts, entrusted wealth management, etc., 10% to 20% is used for high-yield and high-risk investment and financial management, such as stocks, futures, spot, precious metals, etc., and the rest of the survival period is used for family emergency or special expenses.
"The level of pension is not only a matter for the people. Cao Dong believes that in the face of an aging society, the government should not only fulfill the responsibility of protecting the basic and bottom line, but also mobilize the role of various business entities and social organizations to better meet the multi-level and diversified needs of the elderly, and at the same time try to make good use of the resources of the retirement group, enrich the income structure of the retirement group, and improve their retirement income level.
Intern reporter Feng Qiannan Reporter Zhao Jing
How to keep the pension money of the elderly more securely?
Nowadays, many elderly people have realized that "raising children and preventing old age" is no longer the only way to provide for the elderly. However, with the aging of the elderly, the gradual decline of physical condition, and the decline of memory, how to take care of their pension money has become a problem that cannot be ignored.
Jia Liancheng, a 62-year-old citizen of Xi'an, and his wife are both retired workers, with a personal pension of more than 4,000 yuan per month.
"The children are all married, and the work is in the field, so in terms of finances, we are the two of us who manage it ourselves. Jia Liancheng said that when they first retired, the two did not put their pensions together, but were responsible for their own expenses, which made both of them feel very secure and avoided family conflicts due to money.
In the past two years, the old couple has declined in physical condition due to age. After consulting with their children, they decided to hire a nanny to take care of their daily lives.
In order to ensure the stability of the family's finances, Jia Liancheng deposited part of his retirement fund into a fixed bank account in case of emergency. In addition, he gave part of his pension to his wife and children for the family's daily expenses and emergency expenses. This kind of account-sharing management makes both of them feel very relieved and worry-free.
Agricultural Bank of Hanzhong Nanzheng District Branch carries out service activities for the elderly Photo provided by the interviewee
"For the elderly, account-sharing management is a more secure way of financial management. Ren Jia, financial manager of Chang'an Bank Yan'an Zaoyuan Road Branch, believes that due to the gradual deterioration of the physical condition of the elderly, it is necessary to take into account the needs of emergencies and emergency reserves, and deposit the pension in the form of a fixed deposit in the bank, which can not only ensure the safety of funds, but also obtain a certain amount of interest income. Giving part of the pension to the wife or children can be used as a daily expense and emergency reserve for the family to ensure the normal operation of the family.
Different from Jia Liancheng's financial management style, Li Jianhua, who is nearly seventy years old, has worked in a bank in Xi'an for many years and has a deeper understanding of financial management. He divides his pension money into three parts, one part is deposited in the bank in the form of regular term to obtain stable interest income, one part is used to purchase low-risk financial products, such as money market funds, bond funds, etc., and the other part is used to invest in high-risk and high-yield products such as stocks and funds.
"Different investment methods have different risks and returns, and you should choose according to your actual situation. Li Jianhua believes that bank fixed deposits can bring stable interest income, which is a "stabilizer" to ensure retirement life. Those low-risk wealth management products act as a safety barrier to protect funds from violent market fluctuations. High-risk and high-return products such as stocks and funds are like "gambling", and we must pay attention to risk management and cannot invest blindly.
"Investing is not an easy task, and the elderly must be cautious in managing their finances. Zhao Yuxing, the new business center of Taikang Life Insurance Co., Ltd., said that Uncle Li is an insider, with many years of financial experience, and chooses different investment methods according to his own risk tolerance and financial goals, which is relatively mature.
"But in real life, there are many elderly people who can't clearly distinguish their risk tolerance and financial goals when investing with pension money, so they blindly follow the trend, resulting in heavy losses. Zhao Yuxing suggested that when choosing a bank, the elderly should choose a bank with a good reputation and stable operation to ensure the safety of funds. For the elderly who are willing to invest but have no experience in investment and financial management, or even do not have enough time and energy, they can establish a pension account and entrust it to a professional financial institution to take care of it. On the one hand, professional financial institutions have rich investment experience and resources, which can better maintain and increase the value of assets and ensure that the elderly can plan and use their retirement funds well. On the other hand, entrusted management can also save the trouble and time cost of doing it yourself, so that the elderly can focus more on enjoying their old age.
Chinese Shou Shaanxi Branch Carries Out Service Activities for the Elderly Photo courtesy of the interviewee
In November 2022, the Ministry of Human Resources and Social Security and other five departments jointly issued the "Implementation Measures for Individual Pensions", marking the official launch of the implementation of the personal pension system. The introduction of this system provides a new way of old-age security for the majority of residents.
The core of the personal pension system is the voluntary participation of individuals, through the establishment of personal pension accounts, independent choice of investment products, and the accumulation of wealth for the future pension life. The implementation of this system will not only help improve the level of old-age security for residents, but also promote the healthy development of the financial market.
With the introduction of the personal pension system, banks, asset management, and insurance institutions have entered the market, and the rapid expansion of pension financial products has blossomed in multiple points, covering savings, funds, insurance, wealth management and other fields. However, in the face of many pension financial products, how should the elderly choose?
"There are a number of institutions that now offer financial education courses for seniors. These courses are usually conducted by professional financial advisors or financial planners, and the elderly can understand the operation of various pension financial products, risks and returns, and what kind of people are suitable for. Li Hua of Chang'an Bank Yan'an Zaoyuan Road Branch suggested that when choosing pension financial products, we should comprehensively consider our own actual situation, including risk tolerance, investment period and return expectations, etc., and be vigilant against the misleading of institutions to ensure that their own interests are not harmed.
Reporter Yan Zhi
Pension investment: Listen to the advice of experts
Pension is everyone's rigid needs, facing the future, how to scientifically formulate wealth planning, continue to consolidate the foundation of pension wealth reserves, and protect their "pension money bags"?
Forcing yourself to do a good job of pension savings
Nowadays, the issue of pension has received more and more attention from the society. In April 2022, the General Office of the State Council issued the "Opinions on Promoting the Development of Personal Pensions", officially proposing a personal pension system. The personal pension business has been launched in 36 pilot cities such as Beijing and Shanghai, and the implementation of personal accounts, individual contributions, continuous accumulation, and deferred tax payment has been implemented.
"The personal pension system is a supplementary pension insurance system supported by government policies, voluntary participation of individuals and market-oriented operation, and is the main body of the third pillar of the mainland's pension. Yao Qian, financial manager of the business department of Huaxia Bank Xi'an Branch, said.
Volunteers of Hengfeng Bank Xi'an East Street Branch are explaining to the elderly Photo provided by the interviewee
Yao Qian suggested that low-income young and middle-aged people should set a certain savings ratio according to their actual income to provide a stable source of funds for their future retirement life, invest regularly and set a monthly or quarterly investment amount. In the long run, you can accumulate a considerable amount of wealth, so you should avoid early withdrawal and force yourself to do a good job of retirement savings.
For the management of the pension wealth of middle- and high-income young and middle-aged people, Yao Qian believes that this group is facing a higher individual income tax rate, and by paying personal pensions, they can not only enjoy more obvious tax deferral, but also do a good job in the special management of pension funds. To this end, according to their own risk tolerance and investment goals, allocate deposits, wealth management, funds, insurance and other assets to achieve diversification of investment portfolios and improve the quality of life of future retirement.
Investing in pension security is the first priority
"Actually, I've made investments myself before, and in the end I found that it was all in vain. For ordinary people who do not have professional knowledge, I do not recommend blindly investing in funds or wealth management products. As a manager of the business department of a state-owned insurance central enterprise, Ms. Li, who did not want to be named, said that high returns correspond to high risks, and if you prepare pensions in this way, you will not only test the level of investment, but also need to have a strong psychological quality. "In comparison, savings and pension insurance are more secure. ”
Ms. Li believes that savings will be affected by inflation and interest rates, in contrast, the purchase of commercial pension insurance is an investment method with both income and security. If young and middle-aged people want to add some pensions to their future old age, buying commercial pension insurance should be the most suitable choice.
It is understood that the mainstream commercial pension insurance products in the market are mainly divided into two categories, namely annuity insurance and increased whole life insurance. Both types of insurance products have two major advantages, the first is to lock in income. Before purchasing, consumers can clearly know the specific benefits of this product, when they can receive money, how much money they can receive, and how long they can receive it, which will be clearly written into the insurance contract and protected by contract law. The second is safety and reliability. Regardless of whether the final investment income is more or less, the safety of the funds is the first, that is, the principal is not damaged, and the expected income can be reached, which is guaranteed by commercial pension insurance. Because insurance contracts are protected by the Insurance Law, insurance companies are supervised by the China Banking and Insurance Regulatory Commission, which can protect the safety of consumers' funds and the rights and interests they enjoy.
"The combination of social security and commercial insurance will be the trend of future development. Ms. Li said that the current pension insurance has a monthly payment product category, with a minimum monthly payment of 300 yuan. Due to the low threshold, it can help young people develop the habit of forced savings, so it is more suitable for young and middle-aged people to do entry-level planning for retirement. "It is recommended that young people can take 10% of their disposable income as an endowment insurance investment, which will not affect the quality of life, but also make 'retirement flat' more confident. ”
Hengfeng Bank Xi'an Rongxin Road Branch window staff are serving the elderly Interviewees provided photos
"Housing for the aged" should strengthen the system and norms
As a new way of providing for the elderly, simply put, the house owned by the elderly is mortgaged to the insurance company to obtain a certain amount of pension, and the bank or insurance company will take back the housing after the elderly have been 100 years old.
As early as 2014, Beijing, Shanghai, Guangzhou, Wuhan and other places have launched the "housing pension" insurance pilot, and two years later expanded the scope of the pilot. In 2018, the China Banking and Insurance Regulatory Commission (CBIRC) officially extended the pilot scope of this insurance product to the whole country.
Hu Wenxiu, a professor at the Department of Finance of Xi'an University of Technology, said that from the current point of view, "housing for the aged" is only an exploratory way of providing for the elderly, which is only suitable for a small group of elderly people. Traditionally, the elderly leave their property to their children. In addition, since "housing for the elderly" will involve inheritance disputes, real estate valuation and other issues, this method is only suitable for the elderly who are lonely and widowed without children.
Some experts pointed out that as a niche business, "housing pension" insurance, its significance is more to provide residents with a wealth of old-age security methods, and increase the pension options of the elderly group.
Hu Wenxiu suggested that financial instruments should be set up to hedge the rise and fall of housing prices to hedge the risk of housing price changes; improve relevant policies, introduce laws and regulations to standardize the detailed rules for the implementation of "housing for the aged", and increase the publicity of the "housing for the aged" system, so that the elderly and their children have a fuller understanding of this system.
Intern Reporter Qin Yao, Ma Youyi, Chief Reporter Li Rong