Personal pensions
Recently, the Ministry of Human Resources and Social Security held a press conference for the fourth quarter of 2023. What is the good news about personal pensions?
From the perspective of the overall social security situation
By the end of 2023, the number of people insured by basic old-age, unemployment, and work-related injury insurance nationwide will be 1.066 billion, 244 million, and 302 million respectively, an increase of 13.36 million, 5.66 million, and 10.54 million year-on-year.
The income of the three social insurance funds was 7.92 trillion yuan, the expenditure was 7.09 trillion yuan, and the cumulative balance at the end of the year was 8.24 trillion yuan.
It was implemented in 36 cities and regions
Personal pension system
It is currently running smoothly
Positive results have been achieved in the advance work
The next step will be to move forward
The personal pension system is fully implemented
Personal pension refers to the system of government policy support, individual voluntary participation, market-oriented operation, and the realization of the supplementary function of pension insurance.
The personal pension implements the personal account system, and the payment is entirely borne by the participant, and the individual chooses to purchase financial products such as savings deposits, wealth management products, commercial pension insurance, and public funds that meet the requirements, and implements complete accumulation, and enjoys preferential tax policies in accordance with the relevant provisions of the state.
To put it simply, participating in a personal pension is enjoying
On the basis of the basic pension insurance benefits imposed by the state
Increased channels for supplemental pension security
For the insured, it is an extra pension income
Who can participate in a personal pension?
The "Opinions on Promoting the Development of Personal Pensions" stipulates that the scope of participation in the personal pension system is the workers who participate in the basic old-age insurance for urban employees or the basic old-age insurance for urban and rural residents. Persons who have participated in the basic old-age insurance for urban employees or the basic old-age insurance for urban and rural residents, and have not yet met the conditions for receiving basic old-age insurance benefits, can participate in the personal pension system.
Retirees have received basic pension insurance benefits and no longer participate in the personal pension system.
How do I open an account and pay the fee?
Participants participating in personal pensions shall open personal pension accounts on the information platform through the national unified online service portals or commercial bank channels such as the national social insurance public service platform, the national human resources and social security government service platform, the electronic social security card, and the handheld 12333 APP. The personal pension account is used to register and manage personal identity information, and is associated with the basic pension insurance relationship, recording personal pension payment, investment, receiving, deducting and paying individual income tax and other information, which is the basis for participants to participate in personal pension and enjoy preferential tax policies.
After that, choose a commercial bank that meets the requirements to open or designate your only personal pension fund account (you can also designate through other qualified personal pension product sales agencies). As a special special fund account, the personal pension fund account is bound to the personal pension account to provide participants with services such as fund deposit, payment quota registration, personal pension product investment, personal pension payment, individual income tax payment, and information inquiry of funds and related rights and interests.
The personal pension payment is borne by the participant, and the annual payment limit is 12,000 yuan, which can be paid monthly, in installments or on an annual basis, and the payment amount is accumulated according to the natural year and recalculated in the following year, which is very flexible.
The funds in the capital account can independently choose to purchase personal pension products such as savings deposits, wealth management products, commercial pension insurance, and public funds that meet the regulations.
The financial products participating in the personal pension shall be determined by the relevant financial regulatory authorities and released to the public through the personal pension information management service platform (national social insurance public service platform, national human resources and social security government service platform, electronic social security card, etc.) and financial industry platform.
For the specific income information, the participant can inquire through the sales agency of the financial product.
How many taxes can be deducted?
Personal pensions are subject to tax deferral. In the payment link, the individual to the personal pension fund account, according to the 12,000 yuan / year limit standard, in the comprehensive income or business income deduction; in the investment link, included in the personal pension fund account investment income is not levied individual income tax; in the receiving link, the individual pension received, not incorporated into the comprehensive income, separately according to the tax rate of 3% to calculate and pay individual income tax.
How do I claim it?
The personal pension fund account is closed, and the participant meets any of the following conditions, and can receive the personal pension on a monthly, installment or one-time basis.
(1) Reaching the basic pension age;
(2) Completely incapacitated to work;
(3) Going abroad (outside the territory) to settle down;
(4) Other circumstances provided for by the state.
When a participant receives a personal pension, the commercial bank will verify the participant's eligibility through the information platform and transfer the funds to the participant's social security card bank account.
If a participant dies, the assets in his personal pension fund account can be inherited. If the social security card is cancelled due to the participant's overseas (territory) settlement, death, etc., the commercial bank will transfer the funds in the participant's personal pension fund account to the fund account designated by the participant or his heirs.
Can I change the bank of my personal pension fund account?
Participants can change the bank where the fund account is opened, and cancel the original fund account after transferring the funds from the original fund account to the new fund account.
If part of the payment has purchased personal pension products, the part of the funds that have not been purchased can be transferred first, and then the corresponding funds can be transferred after the redemption of the personal pension products.
The original fund account can no longer pay fees and purchase products before the funds and assets are fully transferred, and can only be cancelled after the complete transfer.
Inherit the income of the personal pension account,
Do I need to pay taxes?
Participate in personal pensions and enjoy tax incentives. According to the announcement on individual income tax policies related to personal pensions (Announcement No. 34 of 2022 of the Ministry of Finance and the State Administration of Taxation), the contributions made by individuals to the personal pension fund account shall be deducted from the comprehensive income or business income according to the limit standard of 12,000 yuan/year;
If a participant dies, the assets in his personal pension fund account can be inherited. If the social security card is cancelled due to the participant's overseas (territory) settlement, death, etc., the commercial bank will transfer the funds in the participant's personal pension fund account to the fund account designated by the participant or his heirs.
Inheritance is a special form of receiving benefits, and individual income tax should also be calculated and paid at a separate rate of 3% in accordance with the regulations.