Past Events and Reflections | 5 Common Sense Facts About China’s Pension System That Everyone Should Know

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In the past four months, I have called for an increase in the basic pension for farmers, writing more than a dozen articles and making ten videos. One deep feeling is that: there are many common sense that everyone should know but are not known.

So I wrote 5 points as concisely as possible: there are the most basic ones, such as the basic pension for farmers in most provinces is less than 200 yuan per month (many urban people do not know this), and there are also things that 99.99% of people do not know, such as the financial subsidies for different groups.

If most people know these common senses, I believe that the questions of “whether to significantly increase the basic pension for farmers” and “where does the money come from” will no longer be controversial. Please help forward and spread it.

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01 Income Situation

Average retirement pension within the system: more than 6,000 yuan/month

Average retirement pension for enterprise employees: more than 3,000 yuan/month

Rural and urban residents (mainly farmers) pension: an average of 200 yuan/month

The monthly income ratio is: 30:15:1

02 Financial Subsidies

2023 national financial subsidies for different groups:

Within the system: 0.22 billion people subsidized 805.6 billion yuan, an average of 3,051 yuan/month

Enterprise employees: 120 million people subsidized 762 billion yuan, an average of 529 yuan/month

Rural and urban residents (farmers): 173 million people subsidized 368.1 billion yuan, an average of 177 yuan/month

The subsidy ratio is: 17:3:1

03 Growth Situation

From 2009 to 2023, the monthly retirement pension within the system increased from more than 2,000 yuan to more than 6,000 yuan, an increase of about 4,000 yuan, an increase of about 285 yuan per year

The monthly retirement pension for enterprise employees increased from more than 1,000 yuan to more than 3,000 yuan, an increase of about 2,000 yuan, an increase of about 140 yuan per year

The monthly basic pension for rural and urban residents (farmers) increased from 55 yuan to 223 yuan, an increase of 168 yuan, an increase of 12 yuan per year (more than half of the provinces are below 150 yuan, an increase of about 6 yuan per year)

04 Contribution Ratio

The proportion of pension insurance to wages is 16% for the unit + 8% for the individual, which is higher than the world average level, twice that of the United States, Canada, and South Korea


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