There are 200 million flexible employment personnel in the country, who participate in the pension insurance by bearing the full social insurance premiums themselves. The current national unified payment ratio is 20%. For instance, in Shandong Province, the lower limit of the payment base in 2023 is 4,242 yuan, which requires a monthly payment of 848.4 yuan, and an annual payment of 10,180.8 yuan.

Since the upper and lower limits of the payment base are linked to the total social average wage, it is expected that this year's lower limit of the payment base will increase by about 5% to 6%. After the upper and lower limits of the payment base for 2024 are announced, it will follow the previous year's pattern and start to make up the difference from January. If we look at the growth pattern of payments, paying for 15 years is expected to cost around 230,000 yuan.

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After paying for 15 years, how much pension can one receive upon retirement in Shandong Province?

The pension generated from participating in the pension insurance mainly consists of two parts: the basic pension and the personal account pension.

① The basic pension part is calculated as the social average wage of the year prior to retirement × (1 + the average payment index of the individual) ÷ 2 × the payment duration × 1%.

Although the pension payment base currently used in Shandong Province is 7,468 yuan, it is gradually transitioning to the total social average wage, and a 15-year period is sufficient to complete the transition.

The total social average wage for the year 2022 is 7,069 yuan, and with an annual growth rate of 5%, it is expected to reach around 15,000 yuan in 15 years.

Paying at the 60% tier, the average payment index would generally be 0.6. With such payments for 15 years, one can receive 12% of the social average wage of the year prior to retirement. In this case, the basic pension would be 1,800 yuan per month upon retirement after 15 years.

If one does not retire immediately after 15 years, the basic pension will continue to increase with the growth of the social average wage.The personal account pension part is equal to the balance of the personal account of the pension insurance divided by the number of months determined by the retirement age.

Fifteen years later, the contribution base for the last year of pension insurance will be 9,000 yuan (15,000 yuan multiplied by 60%). For each month of contribution, the personal account can accumulate 720 yuan, and for a year, it is 8,640 yuan.

If you started contributing to the pension insurance 15 years ago, although the amount accumulated in the personal account is less, the personal account will calculate interest every year. Generally speaking, the accounting interest rate will be slightly lower than the growth rate of the social average wage. However, the accounting interest rate will vary each year, which makes it quite complex.

If we calculate based on 8,640 yuan × 15 years, the balance of the personal account will be 129,600 yuan. Assuming the actual balance is slightly lower, it is 115,000 yuan.

The number of months for pension payment at the age of 60 is 139 months, at 50 it is 195 months, and at 55 it is 170 months.

As the retirement age may change in the future, assuming retirement at the age of 60 with a payment period of 139 months, the monthly personal account pension would be around 827 yuan.

Adding the two parts of the pension together, the total monthly pension that can be received is 2,627 yuan. In addition, there is an annual winter heating subsidy of 1,700 yuan, averaging 142 yuan per month. Thus, the average monthly benefit is 2,769 yuan, and the annual amount is 33,228 yuan.

The total expenditure over 15 years is 230,000 yuan. If it were a deposit, there would also be some interest income, but in recent years, the deposit interest rate has been getting lower and lower. It is expected that the future annual deposit interest rate will be around 2%. It is estimated that the principal and interest over 15 years will be around 270,000 yuan, and the payback period is only 8.12 years.The above merely considers the payback period for receiving a pension, without taking into account the comprehensive benefits after death. In the event of the policyholder's demise, family members can receive a funeral subsidy and a consolation payment. If there is a balance remaining in the individual account, it will also be inherited. In addition, the pension after retirement will continue to grow at a rate of 3% to 5% annually.

So, the actual payback period is very short, and the vast majority of people who participate in the insurance will not incur a loss. #Top Headline Creation Challenge# #Pension Knowledge#

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