There is new news about personal pensions!
On January 24, the Ministry of Human Resources and Social Security said that the personal pension system implemented in 36 cities and regions is currently running smoothly and has achieved positive results. The next step will be to promote the full implementation of the personal pension system. According to the latest data, the number of people who have opened personal pension accounts is currently more than 50 million.
Data source: The number of people in personal pension accounts comes from the Ministry of Human Resources and Social Security.
Moreover, the electronic social security card has also launched the "personal pension" function, and more personal pension funds of fund companies will be settled in the future~
Therefore, there may be many guest officers who do not know what the personal pension is all about, and today the rich two will come to popularize science for all guest officials~
Let's take a look at the implementation of relevant policies first:
■April 2022 - The General Office of the State Council issued the "Opinions on Promoting the Development of Personal Pensions" (Guo Ban Fa [2022] No. 7).
■October 2022 - The Ministry of Human Resources and Social Security and other five departments jointly issued the "Implementation Measures for Individual Pensions".
■November 2022 - The Ministry of Finance and the State Administration of Taxation jointly issued the Announcement on Individual Income Tax Policies Related to Individual Pensions.
■November 2022 - The China Securities Regulatory Commission (CSRC) issued the Interim Provisions on the Administration of the Business of Publicly Offered Securities Investment Funds for Individual Pension Investment, and the China Banking and Insurance Regulatory Commission (CBIRC) issued the Interim Measures for the Administration of the Personal Pension Business of Commercial Banks and Wealth Management Companies.
After the release of the above policies, the product directory of personal pensions and the 36 pilot cities (regions) were also announced.
In the future, after the full implementation of the personal pension system, more and more guest officers will join the personal pension investment. Therefore, guest officials who have not yet opened an account can open a personal pension account through the national social insurance public service platform, the national human resources and social security government service platform, the electronic social security card, the handheld 12333 APP and other national unified online service portals or commercial bank channels.
After opening an account, you can participate in personal pension investment~
The annual limit per person is 12,000 yuan, which can be paid monthly, in installments or annually, and this 12,000 yuan can enjoy tax deductions. You can compare the following table with your annual income:
Note: The annual income and applicable tax rate are from the official website of the State Administration of Taxation, and 60,000 yuan is exempt from individual income tax. The tax on investment income from personal pension is not calculated here.
Guests who have participated in personal pension investment, these two days can enter the personal pension pre-tax deduction information into the individual income tax APP, the specific operation manual can refer to this "personal pension tax deduction countdown has been opened, do this well, can you save so much?".
There is a point to remind all the guest officers that the personal pension fund account is closed, and only when the guest officer reaches the basic pension age, completely loses the ability to work, goes abroad (territory) to settle, and other circumstances stipulated by the state, can receive it.
In fact, in addition to enjoying tax incentives, there is also an advantage to paying personal pensions, that is, the sooner you participate in personal pension investment, the more "cost-effective" it is.
This first comes to the question of how to participate.
The investment categories of personal pensions are very rich, including savings deposits, public funds, pension commercial insurance and bank wealth management products. Taking public funds as an example, according to the latest list of individual pension funds disclosed by the China Securities Regulatory Commission, as of December 31, 2023, the number of individual pension fund products has been expanded to 178.
What is the difference between the above four types of personal pension products?
Retirement savings
There are four types of savings for retirement: 5 years, 10 years, 15 years and 20 years. Among them, the interest rate of specific pension savings products is slightly higher than the five-year time deposit interest rate of large banks. At the same time, there are restrictions on purchase eligibility in terms of age, household registration, purchase amount, etc.
Pension insurance
In terms of product design, it is divided into two stages: accumulation period and receipt period. Among them, the accumulation period adopts the mode of "guarantee + floating", and there are two types of stable and aggressive types to choose from, of which the stable pension insurance can obtain a certain rate of return, and the aggressive type is settled according to the actual investment situation.
Pension financial management
The investment direction is mainly fixed income assets, which are relatively stable, and some pension wealth management products are invested in equity assets.
pension fund
There are both products with low risk level and products with high risk level, and there are many types of risk levels. The initial equity investment of some 5-year pension target funds accounts for no more than 80%, and the proportion of equity investment is related to the life cycle of investors.
Why is the initial equity ratio of individual pension funds set so high? Because the lower compound rate of return may be difficult to achieve a substantial increase in pension assets, for young guests, as a decades-long pension investment, you can make full use of the long-term allocation of funds to allocate more equity assets. It is important to know that some yields may seem like little difference in the short term, but the results in a few decades should not be underestimated. This is also the relative special place of some individual pension funds.
For example, there are 4 individual pension Y shares under the rich two that have been included in the list of individual pension funds, namely Fuguo Xinwang Stable Pension (Y), Fuguo Xinwang Balanced Pension (Y), Fuguo Xinhui Pension Target Date 2025 (Y) and Fuguo Xinhui Pension Target Date 2045 (Y).
The A share of these four individual pension Y shares performed relatively well. For example, Fuguo Xinwang Stable Pension A ranked 4th in the same category (4/67) in the past year, Fuguo Xinwang Balanced Pension A ranked 4th in the same category (4/31) in the past year, and Fuguo Xinhui Pension Target Date 2045 ranked 2nd in the same category (2/12) in the past year.
Note: Fuguo Xinhui Pension Target Date 2045 Five-year Holding FOF (A) Ranking Data for the past year comes from China Galaxy Securities Fund Research and Evaluation Center, as of December 31, 2023, similar products are Pension Target Date FOF (2045) (Class A). Fuguo Xinhui Pension Target Date 2045 FOF was established on March 30, 2022, and the previous fund manager: Wang Dengyuan has been in office since 2022-03. The net value growth rate of the 2022-2023 fund share value (-4.43%) and -3.99% (-8.04%) of the 2022-2023 fund share value (A share) and its performance comparison benchmark (CSI 300 index yield * 75% + China Bond Composite Full Price Index yield * 25%) are from the regular report, as of December 31, 2023. As of December 31, 2023, similar products are pension target risk FOF (30%-60%) (equity assets) (Class A) and pension target risk FOF (equity assets 0-30%) (Class A). Fuguo Xinwang Balanced Pension FOF was established on March 23, 2020, and the previous fund manager: Zhang Ziyan has been in office since 2020-03. The net value growth rate of the net value of the Fuguo Xinwang Balanced Pension FOF Fund and its performance comparison benchmark (CSI 300 Index yield * 50% + China Bond Composite Full Price Index yield * 50%) from 2020 to 2023 is 18.23% (18.99%), 5.84% (-1.21%), -12.07% (-10.80%), and -2.23% (-4.68%), respectively, and the data comes from the regular report, as of December 31, 2023. Fuguo Xinwang Stable Pension FOF was established on December 13, 2018, and has served as fund managers: Chen Shuliang from 2018-12 to 2019-6, and Zhang Ziyan from 2019-05 to the present. The net value growth rate of the net value of the shares of the Fuguo Xinwang Stable Pension FOF Fund (A share) and its performance comparison benchmark (yield of China Bond Composite Full Price Index * 80% + yield of CSI 300 Index * 20%) from 2019 to 2023 are 6.28% (7.80%), 7.48% (5.32%), 4.74% (0.87%), -2.40% (-4.06%), and 0.83 (-0.64%) respectively ), data from periodic reports, as of December 31, 2023. The past performance of the fund manager is not indicative of the future, the market is risky, and investment needs to be cautious. The name of the pension fund contains the words "pension target", which does not represent the fund income guarantee or any other form of income commitment.
Now that you know what to buy, when is it important to enter the market?
To put it simply, it is the aforementioned one: the sooner you participate, the more cost-effective it is!
Xiaohong: At the age of 26, he began to participate in personal pension investment, with an annual amount of 12,000 yuan, and participated in it for 30 consecutive years, with a total investment of 360,000 yuan. According to the average annual compound rate of return of 6.5%, the total income of the retirement account reached 1.1039 million yuan. After deducting the 3% tax rate at the time of collection, about 1.0708 million yuan will be received (if it is withdrawn at one time). This is equivalent to Xiaohong's monthly income of 3,569 yuan on the basis of the basic pension after retirement.
Note: The average annual compound rate of return of 6.5% is based on the data of the Social Security Council and the Ministry of Human Resources and Social Security, the average annual investment rate of return of the basic pension insurance fund since December 2016 is 6.49%, and the average annual rate of return of the enterprise annuity since 2007 is 6.58%, so it is calculated at 6.5%. The formula for calculating the total amount of post-retirement accounts
M: Total accumulated account, I: Annual investment payment amount, X: Assumed annual rate of return, n: Number of payment periods. The average monthly allowance is calculated based on the average life expectancy in mainland China, from 55 to 80 years old, a total of 25 years, and the monthly allowance is roughly calculated based on the total amount. The above is a simulation and is not indicative of the future, and is for analysis and illustration purposes only and does not constitute investment advice. The rate of return is an assumption for measurement and does not constitute a guarantee or commitment of income in any sense. The market is risky, and investors need to be cautious.
Xiaolan: I also participated in personal pension investment at the age of 26, with an annual amount of 12,000 yuan, but due to personal reasons, I only invested for the 8th consecutive year, and then failed to continue to participate, with a total investment of 96,000 yuan. Also calculated according to the average annual compound rate of return of 6.5%, when retiring at the age of 55, 96,000 yuan has been rolled to 562,700 yuan, deducting the 3% tax rate at the time of receipt, and about 545,700 yuan (if withdrawn at one time). That is to say, even if he has only participated in personal pension investment for 8 years, because of the charm of time, Xiaolan can get an additional 1,819 yuan per month on the basis of the basic pension after retirement.
Note: The average annual compound rate of return of 6.5% is based on the data of the Social Security Council and the Ministry of Human Resources and Social Security, the average annual investment rate of return of the basic pension insurance fund since December 2016 is 6.49%, and the average annual rate of return of the enterprise annuity since 2007 is 6.58%, so it is calculated at 6.5%. The formula for calculating the total amount of post-retirement accounts
M: The total amount of the accumulated account, N is the year-end value of the account at the beginning of the year, that is, at the age of 26, and the number of payment periods is 8 years. The average monthly allowance is calculated based on the average life expectancy in mainland China, from 55 to 80 years old, a total of 25 years, and the monthly allowance is roughly calculated based on the total amount. The above is a simulation and is not indicative of the future, and is for analysis and illustration purposes only and does not constitute investment advice. The rate of return is an assumption for measurement and does not constitute a guarantee or commitment of income in any sense. The market is risky, and investors need to be cautious.
In fact, many guest officers have begun to prepare for a rainy day in their later years. According to the latest "China Ageing Finance Survey Report 2023" released by the Pension Finance 50 Forum, more than sixty percent (66.12%) of the respondents believe that pension wealth reserves should start before the age of 40, and 23.60% of the respondents believe that they should start preparing for retirement before the age of 30.
So, start preparing for retirement as early as possible. Even if there are thousands of people living in retirement, and everyone's "definition" of old age is different, no matter what kind of life, we can't meet it empty-handed before the arrival of old age. Take advantage of now, it is better to control your impulsive consumption thoughts when the monthly salary arrives, choose suitable personal pension products, start long-term pension investment, accumulate a lot, and wait until retirement, maybe you will have the opportunity to enjoy the happy old age life brought by the compound interest effect.
Risk Warning: Funds are risky, and investment should be cautious. This product is issued and managed by Wells Fargo Fund Management Co., Ltd., and the agency does not assume the responsibility for the investment, redemption and risk management of the product. This information is only promotional material, if there is any change, please refer to the latest announcement of the company. Please read the Fund's legal documents and risk disclosures such as the Fund Contract, the Fund Prospectus and the Fund Key Facts Statement. The scope of individual pension funds that can be invested in public funds is subject to the product list determined by the China Securities Regulatory Commission. The word "pension" does not represent income protection or any form of income commitment, and individual pension funds do not protect the principal and may suffer losses. The risk-return characteristics of different products may be different, and investors should choose the appropriate pension fund according to their age, retirement date, income level and risk appetite.
Investment is risky, and fund investment should be cautious.
Before investing, investors are advised to carefully read the Fund Contract, Prospectus and other legal documents. The fund manager promises to manage and use the fund assets in an honest and trustworthy manner, and does not guarantee a certain profit, nor does it guarantee a minimum return. The performance of other funds does not constitute a guarantee of the performance of the Fund.
The above information is for reference only, if you need to purchase relevant fund products, please pay attention to the relevant regulations on investor suitability management, do a good risk assessment in advance, and purchase fund products with matching risk levels according to your own risk tolerance.