The pension adjustment for the year 2024 is currently in full swing. According to the national plan, this year's pension adjustments are expected to be fully paid out by the end of July, which is also the usual time frame in previous years.

By the end of 2022, the total number of retirees in our country was 136.44 million, a net increase of 4.87 million compared to the previous year. At this rate, it is anticipated that over 140 million people will benefit from the pension adjustment for 2024, which covers individuals who retired and were receiving pensions before December 31, 2023.

The overall national level for the 2024 pension adjustment is set at 3%, with each province establishing their local pension adjustment ratios and levels not exceeding 3%. Many may notice that their pension increase is less than 3%. What could be the reason for this? For instance, how can someone with 30 years of work experience achieve a 3% increase?

Advertisement

What could cause an individual's pension increase to be less than 3% in 2024?

To put it in a way some may not want to hear, generally speaking, a pension increase of less than 3% is likely due to the retiree's relatively high pension level. The lower the pension level, the higher the proportion of increase.

For example, it is well-known that with 15 years of social insurance contributions, the retirement pension one receives is around 1,000 yuan. Let's take a look at the pension adjustment plan for Shandong Province in 2024 under these conditions.

Firstly, there is a fixed increase of 32.6 yuan, followed by an adjustment based on the pension level of 9 yuan, and an adjustment based on the number of years contributed of 12 yuan, totaling an increase of 53.6 yuan, with a growth ratio of 5.36%.

What if we consider the pension adjustment plan for Shanghai? The fixed adjustment is an increase of 61 yuan, which is the highest level in the country. The adjustment based on the number of years contributed is an increase of 15 yuan, and the adjustment based on the pension level is an increase of 10 yuan. The total increase is 86 yuan, with a growth ratio of 8.6%.If it is the pension adjustment plan for Sichuan Province in 2024, the fixed adjustment increases by 27 yuan, the increase according to the payment duration is 7.5 yuan, and the increase according to the pension level is 9 yuan. The total increase is 43.5 yuan, with a growth ratio of 4.35%.

Based on the above pension adjustment plan, it means that even with the same pension level and the same payment duration, the growth ratio varies in different provinces. Generally speaking, in provinces with more developed economies, the higher the pension level, the higher the growth ratio tends to be.

The adjustment of pensions after retirement is carried out on the basis that no further payments are made. Factors such as the duration of social insurance payments, the payment base, and the retirement age during our working years have already been reflected in the calculation of pensions at retirement. Therefore, it is reasonable that the pension adjustment focuses on fairness and only uses a portion of the fixed adjustment. After all, the pension adjustment still retains the linked adjustment part, which means adjustments are made to take care of those who have longer payment durations and higher payment bases.

With a working life of 30 years, how can the growth ratio be 3% in various provinces?

According to the pension adjustment plans of the three provinces mentioned above, with a working life of 30 years, we can at least determine two parts of the pension adjustment: the fixed part and the part linked to the payment duration.

For example, for employees in Shandong Province with 30 years of working life, the fixed increase is 32.6 yuan, and the increase according to the payment duration is 0.8 yuan × 15 years + 0.9 yuan × 10 years + 1 yuan × 5 years = 26 yuan. The pension linkage ratio is an increase of 0.9%. If we do not consider the adjustment for older age, and we require the overall pension adjustment ratio to be 3%.

That is to say, 32.6 yuan + 26 yuan is exactly equal to 2.1% × the basic pension of December 2023 to achieve this. Therefore, for those with 30 years of working life in Shandong Province, the pension is exactly 2790 yuan for the growth ratio to be 3%. If the pension level is below 2790 yuan, the growth ratio will exceed 3%, and if it is above 2790 yuan, the growth ratio will be below 3%.

In Shandong Province, if one has 30 years of working life and a pension of 2000 yuan, the increase in money is 76.6 yuan, and the growth ratio is 3.83%. If the pension is 10,000 yuan, the increase in money is 148.6 yuan, and the growth ratio is 1.486%.

Following the same pattern, it can also be calculated that the pension level line for a 3% increase with 30 years of working life in Sichuan Province is 2786 yuan, and in Shanghai, it is 4550 yuan.Welcome to follow, and I will share more social security and financial knowledge with you. #Top Headline Creation Challenge# #How is the pension specifically adjusted in 2024#