Five years before retirement, if you increase the level of pension insurance contributions, you can get more pensions, is it true?
Netizen: I heard from friends that if you increase your pension contributions five years before retirement, you can get more pensions after retirement. The cost-effectiveness is quite cost-effective. Is it true?
Let's analyze it together!
Many people in the society have misunderstandings about pensions. They think that in the last five years before retirement, if you raise your pension insurance a little higher, you can get more pensions after retirement. In fact, this kind of thinking does not It is absolutely correct. The higher the pension insurance contributions, the more pensions you will receive. However, if you increase the pension insurance in the last five years, the pensions you get are not really that high, and the price/performance ratio is not so cost-effective.
Five years before retirement, if you increase the level of pension insurance contributions, you can get more pensions, is it true?
Of course, the more contributions the better, the more contributions will definitely not suffer, after all, China's pension is the more you pay!

First, why do many people think that the last five years of pension contributions are the most important?
The main reason for this is that everyone thinks that the employer's contribution level is lower than that of the flexible employment personnel, so they want to pay a higher contribution before retirement. In fact, this is wrong. Generally speaking, the employer's contribution will be higher.
The main conditions for receiving a pension are as follows:
The first is to reach the retirement age, which in China is 60 years old for men, 50 years old for female employees, and 55 years old for female cadres;
The second is that the pension insurance payment period must meet at least 15 years.
The principle of Chinese pensions is that the more you pay, the more you get, and the more you pay for a long time, that is to say, no matter when you pay, the more you pay, the better.
Second, the method of calculating the pension
Pensions mainly include basic pensions and individual account pensions.
Basic pension = (monthly average salary of on-the-job employees in the province in the previous year + indexed monthly average payment salary) ÷ 2 × payment period × 1%.
Personal pension = personal account balance / number of months (195 months for 50 years old, 170 months for 55 years old, 139 months for 60 years old)

Five years before retirement, if you increase the level of pension insurance contributions, you can get more pensions, is it true?
You can check which tier your contribution base belongs to. If you always pay at the lowest grade, your pension will be very low after retirement, which is why many people raise the contribution base 5 years before retirement.
In China, there is still a large gap in the average salary level of each region, which is also a major difficulty in pension planning. If you retire in Shanghai, the pension will generally be higher than that of other regions. After all, the average salary is there!

Personal account balance: For employees, the personal account balance is how much money they have paid, while for flexible employment employees, 40% of the payment will be transferred to the personal account, and the rest of the money will be transferred to the overall account!
- Finally, how much more money can you get by raising the pension in the last five years?
This is the question that everyone is most concerned about, how much can you get? How much more can I get? Let's do a calculation together.
For example, in the past 10 years, Lao Wang paid insurance at the 60% payment level in his unit. In the last five years, it suddenly rose to 200%. When it did not increase, the payment index was 0.6. After the increase, the average payment index was 0.6. It has become 1.06.
Five years before retirement, if you increase the level of pension insurance contributions, you can get more pensions, is it true?
Let's help Pharaoh to calculate, first of all, set the formula!
According to the calculation formula of basic pension = the average social salary of the previous year at the time of retirement × (1 + my average contribution index) ÷ 2 × payment period × 1%

If the social average salary level of Lao Wang’s retirement place is 8,000, then if he always pays 60%, the final basic pension is 8,000 × (1+0.6) ÷ 2 × 15 × 1% = 960 yuan.
If the payment level and grade are increased in the last five years, his payment index will become 1.06. Now his basic pension is 8000×(1+1.06)÷2×15×1%=1236 yuan, an increase of 276 yuan .
Five years before retirement, if you increase the level of pension insurance contributions, you can get more pensions, is it true?
The basic pension has increased by 276 yuan. After the payment level is improved, the pension balance of the personal account will also increase. Therefore, the money he gets will definitely be higher than 276.
Moreover, the pension is still increasing year by year, and the amount of increase in the future will be even more!
Last but not least, pay as much as you can for endowment insurance, and you and your family will benefit when you retire!