Today I saw a friend ask, why is the number of months of retirement pension 139 months? How is this calculated? Does it mean that our pension will only be paid for 139 months, and what will happen after 139 months?
The origin of 139 months.
In 1997, when the mainland unified the implementation of the overall account and personal account pension system, the personal account pension also had a number of months. At that time, the number of months was 120 months.
At that time, many people raised objections, women retire at the age of 50 or 55, men retire at the age of 60, the time for people to receive pensions is very different, and the uniform use of 120 months is also a relative unfairness.
Therefore, in 2005, the State Council's "Decision on Improving the Basic Pension Insurance System for Enterprise Employees" re-stipulated the calculation method of pension and introduced a new system for calculating and paying months.
At that time, a table was issued by way of an annex, ranging from 40 to 70 years old. Among them, the most commonly used is the number of months of retirement for men at the age of 60 is 139 months. In fact, other ages have corresponding months, for example, 40 years old is 233 months, 45 years old is 216 months, 50 years old is 195 months, 55 years old is 170 months, 65 years old is 101 months, 70 years old is 56 months. Retirement within the age of 40 or over 70 years old is calculated according to the number of months of payment at the age of 40 and 70.
How is 139 months calculated?
The calculation method introduced by the state is a very complex formula for calculating the index. It is mainly calculated by combining the average life expectancy of the urban population, the retirement age, the interest rate of personal accounts or the rate of return on investment. The purpose is to assume that the monthly pension in the personal account remains unchanged, and in the case of the specified expected interest rate, when the average life expectancy is reached, the money in the personal account is exactly finished.
The 139 months are calculated based on the life expectancy of a newborn born aged 0 in urban areas who retire at age 60 and the fifth census in 2000 is 75.21 years (the actual value is 75 years after rounding), and is calculated by assuming a bookkeeping interest rate and a return on investment of 4%, which is also rounded to the nearest whole number.
The number of months will change in the future.
With the continuous development of the economy and society, people's living standards are constantly improving, and the level of medical technology is also improving, so people's life expectancy is also increasing. Although the life expectancy of the urban population is no longer published, we find that the life expectancy has increased considerably. In 2000, the average life expectancy was 71.4 years, and in 2023 it has reached 78.6 years.
The assumption that the personal account pension remains unchanged is not in accordance with the regulations, because according to the 1997 pension insurance personal account management measures, after each pension increase, the amount of expenditure in the personal account must be increased according to the growth rate of the personal pension. In the past few years, due to the rapid growth of pensions for some elderly people, it is very common to collect the balance of personal accounts in seven or eight years.
Of course, no matter when the balance of the personal account is withdrawn, it will only affect the personal inheritance after the death of the insured. The pension part of the person will also have the overall account part to pay the same amount of personal account pension to ensure that the retirement treatment is not reduced.
In addition, the interest rate of the pension insurance personal account has also changed greatly compared with the past. In 2016~2022, the bookkeeping interest rate has been above 6%~8%. But last year it was 3.97 percent, and this year it seems to be 2.62 percent.
In addition, women not only retire early, but also have a life expectancy of more than 4~5 years higher than that of men.
Based on the above situation, it is true that our personal account monthly calculation system needs to be improved. The 14th Five-Year Plan for the development of human resources and social security clearly mentions the improvement of relevant systems. Now that the latest retirement age regulations have been introduced, it is expected that a new system will be introduced by the end of 2024. #养老金计发月数是139个月, is there no more after receiving it?#