The number of years of social security contributions is an important factor affecting the pension treatment, generally speaking, the longer the contribution period, the higher the pension. This article will analyze the relationship between the number of years of social security contributions and the retirement pension from the following three aspects, so that you can understand the meaning and value of social security contributions.
1. Definition and requirements for the number of years of social security contributions
The period of social insurance payment refers to the cumulative payment time of an individual's participation in social insurance, including the actual payment period and the deemed payment period.
The actual payment period refers to the time when an individual pays social insurance premiums in accordance with the regulations, which is generally calculated in months.
The deemed payment period refers to the time when an individual has not paid social insurance premiums under special circumstances, but can be regarded as paying according to national regulations, which is generally calculated in years.
For example, participation in compulsory military service, serving a prison sentence, re-education through labor, receiving compulsory isolation for drug rehabilitation, and participating in foreign aid work organized by the state can all be regarded as the number of years of payment.
The requirement for the number of years of social insurance payment refers to the fact that individuals must reach a certain number of years of payment in order to enjoy social insurance benefits, such as basic pension and unemployment insurance benefits.
For example, to receive a basic pension, an individual is required to have contributed for at least 15 years.
It should be noted that the number of years of social security payment is not equal to the length of service, which refers to the time that an individual has been engaged in work, and there is no necessary connection with social security contributions.
2. The impact of the number of years of social security contributions on retirement pensions
The impact of the number of years of social security contributions on retirement pension is mainly reflected in two aspects: basic pension and personal account pension. 12
The basic pension refers to the pension paid by the social pooling fund in accordance with the provisions of the state, and is the main component of the pension.
The calculation formula of the basic pension is: basic pension = pension calculation base × (1 + average contribution wage index) ÷ 2× cumulative payment period ×1%.
As can be seen from the formula, the basic pension is directly proportional to the cumulative number of years of payment, and the longer the payment period, the higher the basic pension.
Personal account pension refers to the pension paid by the personal account fund in accordance with national regulations, which is an auxiliary part of the retirement pension.
The calculation formula of personal account pension is: personal account pension = the cumulative amount of personal account savings (including interest) at the time of retirement ÷ the number of months corresponding to the retirement age.
It can be seen from the formula that the personal account pension is proportional to the cumulative storage amount of the personal account, and the cumulative storage amount of the personal account is related to the payment period and the level of payment, therefore, the longer the payment period, the higher the payment level, the higher the personal account pension.
3. Case analysis of the number of years of social security contributions
In order to more intuitively understand the impact of the number of years of social security contributions on retirement pensions, we can analyze it through some examples.
Assuming that a person's average monthly salary is 8,000 yuan, according to Beijing's pension calculation base in 2022 is 11,082 yuan/month, my average contribution salary index is 1, the retirement age is 60 years old, and the number of months is 139, then, his retirement pension = basic pension + personal account pension.
If he pays for 15 years, then his basic pension = 11082× (1 + 1) ÷ 2×15×1% = 16623 yuan, personal account pension = 8000×8% × 15× (1 + 6.7%) ^ 15÷139 = 1339 yuan, retirement pension = 16623 + 1339 = 17962 yuan.
If he has paid for 20 years, then his basic pension = 11082× (1 + 1) ÷ 2×20×1% = 22164 yuan, personal account pension = 8000×8% × 20× (1 + 6.7%) ^ 20÷139 = 2473 yuan, retirement pension = 22164 + 2473 = 24637 yuan.
If he pays for 30 years, then his basic pension = 11082× (1 + 1) ÷ 2×30×1% = 33246 yuan, personal account pension = 8000×8% × 30× (1 + 6.7%) ^ 30÷139 = 5457 yuan, pension = 33246 + 5457 = 38703 yuan.
If he pays for 40 years, then his basic pension = 11082× (1 + 1) ÷ 2×40×1% = 44328 yuan, personal account pension = 8000×8% × 40× (1 + 6.7%) ^ 40÷139 = 11558 yuan, pension = 44328 + 11558 = 55886 yuan.
From these examples, it can be seen that the longer the social security contribution period, the higher the retirement pension, and the difference is still obvious.
In short, the number of years of social security contributions is an important factor affecting the pension treatment, generally speaking, the longer the contribution period, the higher the pension. This article has analyzed the relationship between the number of years of social security contributions and the retirement pension, hoping that you can gain something, and also hope that you can reasonably plan your social security contributions to prepare for your retirement life.