According to the population data of China released by the National Bureau of Statistics for the year 2023, the population aged 60 and above in our country has reached 296.97 million. Compared to the end of 2022, there was a net increase of 16.93 million people.

Everyone will age, and many people will have a long period of retirement after the age of 60. How should we reasonably allocate our wealth for retirement?

Step one, retirement planning should start from young people. Young people around the age of 20 may still be in the single nobility stage. Most of them have jobs and income, but they tend to spend more than they earn, often in a state of not being able to cover their expenses. However, in this situation, they should participate in the basic pension insurance for employees as stipulated by the state. If they are self-employed, it is best to also participate in the flexible employment pension insurance.

Additionally, if their income level is relatively high and they pay personal income tax at a rate of more than 3%, they should contribute to personal pension funds on top of social insurance, which can at least save on taxes.

When it comes to personal pension funds and choosing other urgent financial products, the focus should be on high-risk, high-return investment options such as stocks, options, equity funds, and similar projects.

Step two, young people around the age of 30, at this time, they usually get married, and their income will increase, but they often take on a huge mortgage and car loan.

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For young people in this stage, the first thing to participate in is social insurance. After all, relative job stability and paying social insurance are the common obligations of workers and employers.

This is a stage where adventurous young people should gradually become more conservative. If they have accumulated wealth, they can gradually shift to more stable-yield financial products such as bank wealth management, bond funds, trusts, and commercial insurance. Personal pension funds continue to accumulate, and if conditions permit, they can pay the full amount of 12,000 yuan.Step three, middle-aged individuals over the age of 40, if their income level is not within the system, it will generally reach its peak. With the birth and growth of children, various expenses increase, but generally, savings continue to accumulate.

For those who have not insured or have insured less in the early years, it is imperative to act now. Low-risk investment products such as savings and government bonds should be considered and gradually increased in share. High-risk investment products like stocks and funds should be exited at the appropriate time.

Family asset allocation can follow the Standard & Poor's configuration as follows: daily expenses account for 10% of family assets; unexpected expenses account for 20%; high-risk, high-return investment products account for 30%; and long-term protection-oriented retirement assets account for 40%.

Step four, middle-aged individuals over the age of 50, as their children gradually become adults, they also need to prepare for retirement. Some people's income begins to peak, while others' income starts to decline. After being free from the burden of raising children (if they are not relying on their parents for support, there is no other way), the family's financial burden also lightens. At this time, it is essential to accumulate wealth, aiming to reach the peak of wealth accumulation before retirement.

In this stage, it is necessary to ensure that the payment of pension insurance has been made for more than 15 years, striving to achieve the principle of "more contributions, more benefits; longer contributions, more benefits." Additionally, all types of financial products on hand should be gradually converted into low-risk savings, government bonds, and bank financial products, and commercial pension insurance can be purchased to provide a stable cash flow.

Step five, individuals over the age of 60 have finally retired and can do whatever they wish. At this time, income mainly relies on pensions and various financial products, and expenses should be determined based on the situation. At this stage, the elderly are most concerned with health preservation, as health is more important than anything else.

The wealth accumulated throughout one's life should be gradually consumed during this stage. Personal pension funds can be withdrawn after retirement, and investments and returns are subject to only a 3% personal income tax.

Social security pension will provide a stable retirement benefit, and it will be increased annually based on the growth of the average social wage and the price level.Individual savings should gradually be converted into zero-risk, highly liquid financial products such as deposits and government bonds.

Overall, social security is the key to retirement, and the pension system operates on the principle of more contributions leading to more benefits, and longer contributions leading to greater benefits. Only through continuous and consistent payments can one secure a sufficient pension. #Retirement#