Today, a friend asked, currently, the per capita savings amount for individual pension is only 2002 yuan, why is the enthusiasm for insurance participation not high among people?

What is the individual pension system?

The individual pension system is not a type of endowment insurance; it is a supplementary pension mechanism that individuals can participate in, established by the state, and is hailed as the third pillar of our country's pension security. The first pillar is the social basic endowment insurance established by the state, the second pillar is the annuity pension formed by the contributions of employers and individuals, and the third pillar is the individual pension and commercial endowment insurance established by individuals themselves.

The statement regarding the per capita contribution amount of 2022 yuan is indeed true, but the time refers to the end of the first quarter of 2023. The individual pension system was implemented in November 2022, and in less than five months, the number of account holders reached 30.38 million, with a contribution amount of 18.2 billion yuan, which is actually a good achievement.

According to the currently published data, by the end of 2023, the number of individual pension account holders in our country reached about 50 million people, with participation reaching 76.8% of the personal income tax payers in our country, and the contribution amount reached about 28 billion yuan.

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Why is the enthusiasm for insurance participation not high among people?

1. The need to pay personal income tax.The prerequisite for participating in personal pension plans is that individuals must be enrolled in both the employee basic pension insurance and the urban and rural resident pension insurance. However, when withdrawing funds, a 3% personal income tax must be paid.

Currently, among the more than 700 million working population nationwide, the vast majority do not pay personal income tax. Our threshold for personal income tax is quite high; it is only possible to pay personal income tax if the monthly income exceeds 5,000 yuan, not to mention the seven special additional deductions. Some young people under greater pressure may not need to pay taxes even with a monthly income of over ten thousand.

Due to the 3% personal income tax rate upon withdrawal, although the products of personal pension plans may be very attractive, those who do not pay personal income tax will definitely hesitate. Even individuals who pay a 3% personal income tax will not be highly motivated. Only those whose personal income tax exceeds 3% will be more beneficial, thus the target audience becomes very limited.

② Participation in personal pension plans relies entirely on individual initiative.

Two years into the implementation of personal pension plans, the contribution levels are not high, primarily due to the lack of mandatory constraints and insufficient proactive awareness among individuals.

After opening a personal pension account, the annual limit is 12,000 yuan. Contributions can be made in installments or in a lump sum.

Originally, this money was at one's own disposal for spending, but after contributing to a personal pension plan, it can only be withdrawn after retirement. Many people may weigh the future benefits against immediate interests, adopting a wait-and-see attitude, and thus may not choose to pay immediately.

③ The investment returns of personal pension plans are not satisfactory.

There is no historical reference to determine whether the investment products of personal pension plans are good or not. Based on the operational situation over the past two years, the investment returns have indeed been less than satisfactory.In recent years, many pension target funds on individual pension platforms have generally suffered losses of about 10%. Of course, the reason is still due to these products being invested in equity-type products; if the stock market performs poorly, it is natural that there is a possibility of losses.

Additionally, individual pensions require one to choose investment products on their own. If one opts for retirement target products with higher risks, after contributing to the individual pension, it becomes a personal concern, which is indeed quite troublesome.

Overall, the enthusiasm for participating in individual pensions is not high, and this is indeed caused by very complex reasons. It is believed that true gold does not fear the fire test; as time goes by, people will increasingly recognize the necessity of individual pensions, and then the number of participants will increase. #Top Headline Creation Challenge# #Individual Pension#