my country’s Endowment insurance system is a system consisting of basic endowment insurance, enterprise annuity and occupational annuity, personal savings endowment insurance And the system composed of the”three pillars” of commercial pension insurance will undoubtedly help cope with the aging of our country’s population and promote the sustainable development of the pension insurance system. At present, as the first pillar of basic pension insurance is”dominant”, the second pillar of enterprise annuities develops slowly and the coverage is relatively small, and it is imminent to promote the construction of the third pillar of pension insurance.
As the aging of the population intensifies, how to enrich the”money bag” for the elderly has become a hot topic of concern.
This year’s government work report mentions the third-pillar pension insurance for the first time and proposes to standardize its development. This plan sparked heated discussion.
What is the third-pillar pension insurance, which groups are suitable for participating, and how much”bargaining chips” can be added to the pension after participation? We listen to professionals to calculate this pension account.
The third pillar is a shortcoming in the pension insurance system
What is the third pillar of pension insurance?
my country’s pension insurance system is a”three-pillar” system. According to Zheng Bingwen, a member of the National Committee of the Chinese People’s Political Consultative Conference and director of the World Social Security Research Center of the Chinese Academy of Social Sciences, the first pillar is basic pension insurance, which is commonly referred to as pension, and the second pillar is enterprise annuity and Occupational Annuity, the third pillar includes personal savings pension insurance and commercial pension insurance.
“The first pillar is pay-as-you-go, led by the government, and basic guarantee; the second pillar is enterprise (professional) annuities, led by employers, and raising benefits can also help employers attract talents; third The pillars are led by individuals, and a portion of the money is paid before tax at work, and tax is levied upon retirement. These three pillars jointly support the elderly.” Professor Dong Keyong of the School of Public Administration of Renmin University of China explained to reporters.
From the experience of various countries, the establishment of a multi-level pension insurance system is considered to be an important measure to cope with the aging of the population and promote the sustainable development of the pension insurance system.
In an interview with reporters, Vice Minister of Human Resources and Social Security You Jun introduced that among the three levels of the current pension insurance system, as the first level of basic pension insurance, the system is basically sound, and employee pension insurance plus urban and rural residents Pension insurance currently covers nearly one billion people. As the second-level enterprise annuity and occupational annuity system, initially established and gradually improved, it currently covers more than 58 million people.
The first pillar basic old-age insurance covers a wide range of people, but”one branch is the big one”, plus the fact that pension accounts for an average of 45%of pre-retirement wages, has caused many professionals to worry. With the deepening of aging, the income and expenditure pressure of basic pension insurance will increase day by day.
“The second pillar of enterprise annuities has developed slowly and has relatively small coverage. At this time, we must consider the third pillar as an entry point to accelerate the establishment of a multi-level old-age security system.” Member of the National Committee of the Chinese People’s Political Consultative Conference, Foreign Economy Said Sun Jie, Associate Dean of the School of Insurance at the University of Business Administration.
It is imminent to promote the construction of the third pillar of pension insurance.”As the third level of individual the pension system has not yet been introduced. Indeed, the third level is still short in the entire pension insurance system. Board.” You Jun said bluntly.
At the same time, more and more people choose flexible employment. There is no clear employer for this part of the group. In terms of how to protect the pension rights of this part of the group, the third-pillar endowment insurance led by the individual has high hopes.
The market reflects the pilot policy”It’s not easy to say I love you”
In fact, since May 2018, the third-pillar pension insurance has begun to Pilot projects in Shanghai, Fujian and Suzhou.
The pilot is clear, and the implementation of personal tax deferred commercial pension insurance. Insured persons who purchase tax-deferred pension insurance products can pay the premiums before tax and pay personal income tax when they receive the insurance after retirement. The maximum deduction is 1,000 yuan per month before tax.
For many employees who are concerned about buying tax-deferred pension insurance and how much money they can receive when they retire, the China Banking and Insurance Regulatory Commission has calculated an account:assuming that the insured starts to participate at the age of 30 and pays out every month Insured for 1,000 yuan, the product guarantee rate of return is 3.5%. When he retires at the age of 60, he will pay a premium of 360,000 yuan, with an account value of 618,000 yuan. Through actuarial calculations, you can get 2,746 yuan a month.
As of the end of April 2020, a total of 23 insurance companies have participated in the pilot program, 19 companies have issued orders, and accumulated insurance premium income of 300 million yuan, with 47,600 insured persons.
The relevant person in charge of the China Banking and Insurance Regulatory Commission said that the personal tax deferred commercial pension insurance pilot is progressing steadily, but overall The scale is small, and the market generally reflects that the policy is not attractive enough.
One of the reasons for the lack of attractiveness of the pilot is that the beneficiary groups have been further narrowed due to the individual tax reform.
Zhou Yanfang, a representative of the National People’s Congress who participated in the research and formulation of tax-deferred pension insurance policies and deputy general manager of China Pacific Insurance Life Insurance Shanghai Branch, once revealed that when formulating tax-deferred pension insurance policies, it was largely based on the original Individual tax calculation method.
Due to the adjustment of the individual tax policy, the threshold has been raised from 3,500 yuan to 5,000 yuan per month, which has reduced the number of taxpayers and reduced the coverage of tax-deferred pension insurance.
Not long ago, at a press conference held by the Information Office of the State Council, when Luo Xi, Chairman of the People’s Insurance Company of China, talked about the salient features of the third-pillar pension insurance, he first mentioned that this is for high-income individuals. A way to provide for the aged.
At the same time, tax incentives are insufficient. According to Zhou Yanfang, according to the pilot method, the tax rate for workers who need to pay personal tax when they retire is 7.5%. According to the new personal income tax payment policy, workers with a monthly income of less than 8,000 yuan are required to pay the personal tax rate of 3%.
As most of the laborers in our country earn less than 8,000 yuan a month, Zhou Yanfang believes that the tax-deferred pension insurance tax policy presents a negative incentive effect. In addition, the tax deferment ceiling of 1,000 yuan is not attractive enough for high-income earners.
It is recommended to appropriately increase the tax exemption to enhance its attractiveness
“Tax intensity is not enough.” Luo Xi suggested that the state should consider comprehensively in many aspects and appropriately increase tax exemption.
Zhou Yanfang agreed with this. She proposed to increase the pre-tax deduction standard of tax-deferred pension insurance and increase the monthly deduction limit to 3,000 yuan. And establish a dynamic adjustment mechanism for the amount of tax incentives, reduce or exempt the tax rate at the stage of receiving, increase the attractiveness of products and the coverage of preferential policies.
Currently, tax-deferred pension insurance has problems such as inconvenient participation, cumbersome procedures, and complicated calculations. Zheng Bingwen believes that a complete third-pillar system design plan that accommodates all financial products should be introduced, so that preferential tax policies are implemented on account holders rather than products, so that account holders can”take all” with one account. All qualified financial products to improve the convenience and accessibility of the third pillar.
“I hope to speed up the pilot, expand the scope of the pilot, and expand the scope.” Sun Jie suggested changing the preferential tax policy to a financial subsidy, and paying low- and middle-income people through financial subsidies to make more Many people independently participate in commercial pension insurance.
The reporter learned that in recent years, the Ministry of Human Resources and Social Security has systematically planned and designed the third-level system model under the framework of a multi-level pension insurance system.
“After sufficient research and demonstration, drawing on international experience, and summarizing some domestic pilot experiences, a preliminary idea has been formed.” You Jun introduced that the general consideration is to establish an account system based on Individuals voluntarily participate, the state finances provide taxation support, and the funds form a personal pension system with market-oriented investment and operation.
According to the introduction, the next step, the Ministry of Human Resources and Social Security will be implemented as soon as possible to meet the diverse needs and better guarantee the happy life of the elderly.