As the average social wage continues to rise, the amount of social security contributions also increases. Coupled with the recent tightening of rumors about gradual retirement delays, some young friends wonder, why not choose to save money in the bank? If you pay 1,000 yuan per month for pension insurance and save the same 1,000 yuan in the bank, which type of pension will be higher in the end?

How much money can you save by depositing 1,000 yuan in the bank every month for 40 years after retirement?

Don't underestimate 1,000 yuan; the accumulated amount over 40 years is actually quite substantial. Due to the continuous decline in bank deposit interest rates in recent years, the current rates have generally dropped below 2%.

If we consider the future interest rate fluctuations and calculate compound interest at an annual rate of 2%, depositing 1,000 yuan per month and 12,000 yuan per year, after 40 years, according to the sum formula of a geometric series, the result is: having a principal and interest of 724,800 yuan.

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After 40 years, we are likely to retire at the age of 65. With 15 years of pension preparation, you can spend 48,000 yuan of savings per year, which is equivalent to an average of 4,000 yuan per month in pension. Moreover, the advantage is that in case of illness or other situations, you can withdraw money for medical treatment at any time.

How much pension can you receive after paying 1,000 yuan per month for pension insurance for 40 years upon retirement?

Our pension calculation formula mainly consists of two parts: the basic pension and the personal account pension.

① The basic pension part is mainly linked to the average social wage. Based on the payment period and the average payment index of the individual, a certain proportion of the average social wage is received.If the contribution period is 40 years with an average contribution index of 0.6, one can receive a pension equivalent to 32% of the average social wage of the year prior to retirement.

What will the average social wage be 40 years from now? At present, the average social wage in most areas has already reached seven to eight thousand yuan, and Shanghai has reached 12,307 yuan this year.

Conservatively estimated, the average social wage 40 years from now could reach over 20,000 yuan, which means the basic pension could be at least 6,400 yuan or more consecutively.

② The personal account pension is equal to the balance of the individual's social insurance account ÷ the number of months determined by the retirement age.

For flexible employment, the contribution rate is 20%, and the percentage that goes into the personal account is 8%. Therefore, with a contribution of 1,000 yuan, 400 yuan goes into the personal account each month, totaling 4,800 yuan per year.

The accounting interest rate of the social insurance personal account is generally much higher than the bank deposit interest rate. Last year's rate was still as high as 3.97%, and it is expected to reach around 3% this year.

Additionally, the upper and lower limits of the social insurance contribution base are determined based on the average social wage. As the average social wage increases, the contribution base will also increase, and the amount of money allocated to the personal account will increase as well.

If contributions are made at the 60% level for 40 years, it is estimated that the personal account balance 40 years from now could reach around 400,000 yuan.

The number of months for payment is also a variable, as we will improve the relevant systems before 2025. Although the current number of months for a 65-year-old retiree is 101, I believe it might become 200 months 40 years from now.

Even with such calculations, the monthly personal account pension could be around 2,000 yuan.The sum of basic pension and personal account pension amounts to a monthly receipt of over 8400 yuan.

Which type of pension plan is better?

To be honest, although the annual payment for employee pension insurance increases every year, the pension benefits are significantly higher, more than double compared to savings.

Pension is a benefit that supports the insured person until their death. Once the savings are depleted, they are gone.

Pension benefits also increase annually based on the growth of the average social wage and the rise in prices, making them clearly more stable.

After participating in pension insurance, if the insured person passes away, family members can still receive three types of benefits: funeral subsidies, consolation money, and the balance of the personal account of the pension insurance, which can also effectively assist the family of the insured. This is much better than depleting savings and only adding burden to the family.

Additionally, there is the pressure of inflation. After all, it's a timeline of up to 40 years, and the prices will definitely rise significantly. A 4000 yuan pension may seem a lot now, but what about in the future? The purchasing power might only be equivalent to about 2000 yuan now.

Therefore, participating in pension insurance, with higher pension benefits and more comprehensive protection, is more suitable for retirement. #Top Headline Creation Challenge# #Pension#