Advantages and Disadvantages of Dry Traditional Pension Insurance

Traditional pension insurance is a type of pension insurance that has a fixed rate as well as a life table as the basis for rate setting, therefore, traditional pension insurance is not inflation proof. Among other things, traditional pension insurance allows for fixed contributions, fixed payments, and fixed interest. So, what are the other advantages and disadvantages of traditional pension insurance? Let's look at the following brief introduction.

Dry goods! The advantages and disadvantages of traditional pension insurance!

People enrolled in traditional pension insurance, after reaching the retirement age and meet the conditions for receiving pension insurance can receive pension, and at the same time can enjoy the treatment of pension insurance. For this insurance, many people are not aware of its advantages and disadvantages, so what are the advantages and disadvantages of traditional pension insurance?

In response to this query, industry professionals said that the traditional pension insurance is a fixed contribution, fixed receipt, fixed interest. For people of different ages who are insured there will be different contribution standards, contributions to the retirement and reached a cumulative period of 15 years, and then began to receive pension; can also be monthly or annual contributions, in the payment of fees can determine the future amount of money. Among the advantages of the traditional type of pension insurance is that the return is fixed, while the disadvantage of the traditional type of pension insurance is that it is difficult to resist the effects of inflation. The details are as follows:

Advantage: Traditional pension insurance is clearly selectable and predictable, and returns are relatively fixed. In the event of negative or zero interest rates, this will not affect the rate of return on the pension.

Disadvantage: traditional pension insurance is difficult to protect against inflation. This is mainly because the product is thought to be purchased with a fixed interest rate, and if inflation is relatively high, there is a risk of depreciation in the long term.

In summary, the amount of pension benefits you can receive from a traditional pension insurance policy can be clearly chosen and predicted, and its returns are relatively fixed. The return on the pension will not be affected, but it is difficult to protect against inflation and is a better policy for people of conservative age.

Related recommendations

How to choose? To show you the types of commercial pension insurance

It is understood that China's elderly population in 2014 has reached more than 100 million, more than 10% of China's population. The development of science and technology is more and more advanced, the life expectancy is increasing, the one-child policy, these pressures are heavy on the body of young people and middle-aged people, which also urged us to begin to pay attention to the problem of old age: the basic social pensions can not satisfy the current generation of people's old age problem. Commercial pension insurance then surfaced, so how should we choose the type of commercial medical insurance? What are the medical insurance with good coverage? Which one is worth buying? The first thing you need to do is to take a look at the top 10 hot insurance companies this year: what are the good medical insurance recommendations?2020 Hot 20 quality medical insurance inventory

Commercial Pension Insurance Insurance Age Limit,Early planning is the countermeasure

As we all know, China's social pension insurance in the current aging situation, facing many problems, people's old age is just "enough", but does not mean that you can "eat well". And due to rising medical costs, rising prices and many other factors, "enough" has been difficult to meet the needs of the people, they urgently need to buy commercial pension insurance to improve their standard of living in their old age.