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What is an annuity?
Annuity refers to a series of equal and regular income and expenditure. For example, installment credit purchase, installment loan repayment, pension payment, installment project payment and the same sales income every year all belong to the form of annuity payment and reception.

Annuities can be divided into ordinary annuity, early annuity, deferred annuity and perpetual annuity according to the time and method of payment. Annuity originated in a country with relatively developed free market economy. It is an employee welfare plan voluntarily established by enterprise employers, that is, the pension provided by enterprise pension plan. Its essence is part of the labor remuneration obtained by employees in the form of deferred payment or part of the profits shared by employees.

China has initially established a three-pillar old-age security system consisting of basic pension, enterprise supplementary pension and personal savings pension, among which enterprise annuity and occupational annuity are listed as the second pillar. The development of the second pillar of old-age security plays an important role in establishing and perfecting the social security system and improving the quality of life of employees after retirement.

Suggestions on annuities

1. Improve the preferential tax policies for pensions.

Preferential tax policies will greatly stimulate the internal motivation of enterprises to establish pension system for employees. Drawing lessons from the experience and successful examples of preferential tax policies, it is suggested that in the operation of enterprise annuity, the tax preferential range of enterprise payment should be appropriately increased, and individual payment should be deferred.

2. The pension system has gradually changed from "non-mandatory" to "semi-mandatory" to "mandatory".

According to Article 16 of the State Council's Latest Opinions on Agreeing to Deepen the Reform of Income Distribution System: "Improve the basic old-age insurance system. Promote the reform of endowment insurance system in public institutions by classification, and study and promote the reform of endowment insurance system for civil servants. Develop enterprise annuities and occupational annuities. " It can be seen that the central government has made up its mind to reform the endowment insurance system for public institutions and civil servants, and will continue to vigorously develop enterprise annuities and occupational annuities.

Baidu Encyclopedia-Annuity