The pension has been raised by 3% again, but the increase for the three types of people is relatively small. Do you have it?

On June 17th, the Ministry of Human Resources and Social Security officially announced the adjustment plan for employee pension in 2024, with a 3% increase. On average, the monthly pension will increase by about a hundred yuan.

From 2005 to 2024, employee pension has been increasing continuously for 20 years, with an increase of 10% for 8 years. Starting from 2016, it has been decreasing year by year, with increases of 4.5%, 4%, and 3.8% in the past three years, and then decreasing to 3% this year. This indicates that the downward trend in the increase is inevitable.

But anyway, the continuous increase in pension for 20 years is enough to make working people envious. How many migrant workers can have their wages continuously increased for 20 years? After working for 10 years, most people's wages have basically reached the ceiling, and the growth is almost stagnant.

This year's adjustment plan is not significantly different from previous years, and will continue to adopt quota adjustment, linkage adjustment, and appropriate tilt. Quota adjustment refers to the uniform increase in the number of retirees in each province and city, with a slightly higher increase in economically developed and remote areas. For example, in 2023, Shanghai will increase 61 yuan per person per month, and Xizang will increase 70 yuan, more than Shanghai, but Guangxi will only increase 29 yuan.

The linkage adjustment still follows the principle of "more payment, more long-term payment". The differences in each region are quite significant, depending on the balance level of the local pension fund. The tilt adjustment mainly targets the elderly and those working in difficult areas.

According to this adjustment plan, there will be three types of people with relatively less inflation. The first type is people with relatively low payment quotas, usually those with lower salaries or those who are paid by enterprises according to the minimum wage standard.

Taking last year's Shanghai pension adjustment plan as an example, based on the monthly basic pension received in December 2022, the monthly increase is 1.8%. If two people's pensions are 5000 yuan and 3000 yuan respectively, then they will increase by 90 yuan and 54 yuan respectively, with a difference of 36 yuan.

The most crucial thing is to increase the pension in a fixed proportion every year, and the gap between those with low and high contributions will become increasingly large.

The second category is people with relatively short payment periods. Nowadays, many young people want to pay the minimum age of 15 years and then sit and wait for retirement. If you only pay for 15 years, there may not be much pension, and the annual increase is also the least.

Taking last year's plan in Shandong as an example, if only 15 years are paid, it can only increase by 1.2 yuan per month. If 30 years are paid, it can increase by 24 yuan per month, which is 20 times that of 15 years. Moreover, the annual gap is increasing cumulatively, resulting in a continuous widening of the pension gap between the two.

The third category is retirees under the age of 70, as most provinces and cities lean towards older retirees, starting from the age of 70. If you are 60 or 65 years old, you won't be able to enjoy this part, so the increase will naturally be less.

Many people hope that the pension adjustment mechanism can be reformed, implementing "raising the low and controlling the high", which means that the pension will increase slightly for those who are high, and increase slightly for those who are low, in order to narrow the gap.

However, this year's document from the Ministry of Human Resources and Social Security still emphasizes the need to reflect the incentive mechanism of "more contributions, more benefits" and "long-term contributions, more benefits", so that employees who pay more and long-term contributions while working can receive more pension benefits.

To be honest, if we really implement the so-called "raising the low and controlling the high" policy, it will definitely dampen the enthusiasm of many people. Since the payment amount is small, the time is short, and more pension can be obtained, why do I have to pay so much? With all this, the pension is even more insufficient. So, this idea is not very realistic.

However, retirees nowadays are indeed the happiest because our pension is "pay as you go", which means that the money we receive this year will be spent this year. At present, there is still sufficient pension funds. By the end of 2022, 367 million people are paying for employee pension insurance, while only 136 million people are receiving employee pension funds.

With the arrival of fewer children and an aging population, these two numbers will reverse in the future. The number of people paying will decrease, while the number of people receiving pensions will increase. Either delay retirement, delay receiving pensions a few years later, or everyone will receive a little less.