But in fact, it is not a specific product, but a mechanism. Literally, it is a pension prepared by individuals for themselves and a new source of pension funds after retirement in the future. Let me talk about their differences in detail!
The right person
Personal pension is for workers who participate in the basic old-age insurance for urban workers or the basic old-age insurance for urban and rural residents, and commercial old-age insurance is for everyone.
Do you enjoy tax benefits?
Personal pension can be deducted before tax, and commercial pension insurance with tax preference can not enjoy tax preference except commercial pension insurance with tax extension.
Is input restricted?
Personal pension is per person per year 1.2w, and commercial pension insurance is not limited, which can be configured according to individual actual needs. If you want more, you can save more.
Is the principal guaranteed and interest guaranteed?
Personal pension does not guarantee principal and interest, because the investments that can be made include bank financing and Public Offering of Fund. Since the promulgation of the new asset management regulations, these are not guaranteed capital and interest, so there are still certain risks. Commercial endowment insurance is written into the contract and determined; If you attach a universal account, there will also be guaranteed income; And the principal must be safe.
Liquidity of funds
Personal pension is closed and cannot be taken out before retirement age. Commercial endowment insurance has an advantage in liquidity. When it needs urgent funds, it can reduce insurance, use policy loans or even surrender.
Collection mechanism
Personal pension must be collected after retirement, and now the retirement age is delayed. Because of uncertainty, commercial endowment insurance can set its own age, which is generally 55, 60, 65 and 70 years old.
Do I have to pay tax when I collect it?
Personal pension is subject to tax, and commercial pension insurance is not subject to tax.
Do you enjoy other services?
Personal pension has no other services, and commercial pension insurance can enjoy the value-added services of insurance companies, such as medical green links, high-end pension community occupancy rights, docking insurance trusts and so on.
Generally speaking, one of the major problems of China's old-age security system is that it relies too much on the first pillar. At present, the proportion of the first pillar pension headed by ZF is too high, and it faces the risk of imbalance between income and expenditure. The second pillar, occupational annuity and enterprise annuity, covers a limited number of people and it is difficult to upgrade the scale, so the personal pension system has been promoted.
Personally, if you want to live a happier life after retirement, such as asking a nanny to take care of your daily life and giving pocket money to your grandchildren, it is really not enough to rely on a fixed monthly pension. This requires everyone to think more about their old age before retirement and make plans and preparations early.