Many people will face hesitation in retirement whether to pay a high base. Everyone knows that pension insurance is more paid and more, long pay more, but if you pay according to the 300% base, the burden is also quite heavy. Is it cost-effective to pay pension insurance at 300% basis compared to 100% base payment?
Pension insurance contributions are calculated according to the payment base multiplied by the payment ratio. For example, in Yunnan Province in 2021, the pension insurance payment of flexible employment personnel is divided into 25 grades, and 60% of the minimum grade monthly payment is 754 yuan, and 9048 yuan needs to be paid a year. The 100% grade needs to pay 15,081.6 yuan a year. The 300% grade needs to pay 45,244.8 yuan a year. In 2020, the per capita disposable income of residents in Yunnan Province was 23,259 yuan, of which the per capita disposable income of urban permanent residents was 37,500 yuan. 300% base payment, not high.
The 2021 pension calculation formula in Yunnan Province is still based on the Notice on Adjusting the Measures for the Calculation and Payment of basic pensions for employees of enterprises issued in 2004 (Yun Zhengfa Document No. 45 of 2004). The pension calculation method mainly consists of two parts: basic pension and personal account pension, and these two parts are the national unified calculation formula. Transitional pensions are mainly for the previous years of contribution and deemed contribution years before the establishment of a local personal account.
Suppose we used to pay on a 60% base for 21 years, a 100% base for 2 years, and the last 4 years at 300% and 100%, see what's the difference?
In fact, our pension is accumulated year by year, and the payment of the last 4 years does not affect the treatment generated by the previous pension contribution. For example, if you pay on a 100% basis for 4 years, the sum of the 27-year payment index is 60% × 21+100% × 2+100% ×4. If the sum of the 4-year contribution index on a 300% basis is finally 60%, × 21+100% × 2+300% ×4. In the end, it is all divided by 27 years to find the average contribution index, and then multiplied by the 27 years of payment period. In the end, the basic pension is paid according to the 300% base for 4 years, which is 4 years higher than the 100% base contribution, and the basic pension can be increased by 4% of the social average wage, which is 1% more per year.
The pension base in Yunnan Province in 2020 is 7092 yuan, which may continue to rise in the next few years, and it is expected to reach about 9,000 yuan after retirement after 4 years. This is equivalent to a monthly basic pension of 360 yuan more.
In addition to the basic pension, there will also be differences in the personal account pension. Because, the balance of the pension insurance personal account is credited to the personal account according to 8% of the monthly payment base. The 300% base payment is 12568 yuan higher than the 100% base payment, which is equivalent to the difference of 1005.44 yuan in the personal account of the monthly pension insurance in the future, and the difference in one year is more than 12,000 yuan. Interest is also calculated in the personal account of pension insurance every year, and the bookkeeping interest rate in recent years has been above 6% to 8%. In addition, the difference in the payment base for future years will increase. Assuming retirement after four years, the average annual difference in personal accounts can reach 15,000 yuan, and the total can be 60,000 yuan more.
The number of months of personal account issuance for retirement at the age of 50 is 195 months, 139 months for 60 years old, and 170 months for 55 years old, respectively, and can receive more personal account pensions of 307 yuan, 432 yuan and 353 yuan.
If the payment is based on a 100% base, which actually includes the previous payment period, you can receive 22.8% of the average social salary of the previous year of retirement, and if you calculate according to the pension base of 9000 yuan, you can receive 2052 yuan per month. If it is a 300% base contribution, the basic pension can receive 26.8% of the social average salary, which can be calculated as 2412 yuan per month.
Personal account pension, if the personal account has 100,000 yuan (100% base contribution) in the future retirement, you can receive a personal account pension of 588 yuan per month. If it is 300% base payment for four years, the personal account can have 160,000 yuan, and the monthly personal account pension can be 941 yuan.
Overall, pay more than 100,000 yuan, receive a monthly pension of more than 700 yuan, and the cost performance does not look particularly high. But the problem is that this part of the higher treatment can stay with us for a lifetime, and it will also increase according to the pension adjustment. Generally speaking, if there is affordability, it is still possible to pay according to a high base.