Adjustment of pension for retired individuals in 2025: Increase by 2%

According to CCTV news, the Ministry of Human Resources and Social Security and the Ministry of Finance recently issued a "Notice on Adjusting the Basic Pensions of Retired Persons by 2025". The notice specifies that starting from January 1, 2025, the basic pensions of retired individuals who have completed retirement procedures by the end of 2024 and have been receiving monthly basic pensions will be increased by 2% on average. This adjustment takes into account factors such as changes in prices and increases in employee salaries, in order to determine a reasonable adjustment ratio for pensions. The original text reads: @Retired persons - Basic pension increased by 2%, for detailed adjustments click here The Ministry of Human Resources and Social Security and the Ministry of Finance recently issued a "Notice on Adjusting the Basic Pensions of Retired Persons by 2025". Let's find out more about the specific adjustments. Basic pensions for retired individuals will continue to be adjusted in 2025. The notice specifies that starting from January 1, 2025, the basic pensions of retired individuals who have completed retirement procedures by the end of 2024 and have been receiving monthly basic pensions will be increased by 2% on average compared to the monthly average of basic pensions for 2024 retired individuals. This adjustment takes into consideration various factors such as changes in prices and increases in employee salaries, in order to determine a reasonable adjustment ratio for pensions. The notice requires all provinces, autonomous regions, and municipalities directly under the central government to develop specific implementation plans based on local conditions, and to organize and implement the adjustments quickly, ensuring that the increased basic pensions are disbursed to retired individuals as soon as possible. This year, pension adjustments will focus on benefiting middle and low-income groups. Since 2005, China has continuously adjusted pensions for retired individuals, steadily increasing the level of pension benefits. What are the characteristics of this adjustment? This adjustment continues to combine fixed adjustments, adjustments linked to certain factors, and appropriate bias adjustments, with the focus on benefiting groups with lower pension levels. Fixed adjustments refer to a unified increase in the amount of pensions for all types of retired individuals in the same area, regardless of whether their basic pension levels are high or low, reflecting the principle of fairness. Adjustments linked to certain factors refer to adjusting pensions based on the individual's payment years and level of pension benefits, reflecting an incentive mechanism of "more payment, more benefits" and "longer payment, higher benefits". Appropriate bias adjustments show care towards key groups, including elderly retired individuals and those in difficult and remote areas. According to the above methods, the increase in basic pensions will vary for each individual. There is a guarantee of timely and full payment of basic pensions. Pensions are essential to the basic livelihood of millions of retired individuals. Experts say that, based on various data, China has a solid material foundation for timely and full payment of pensions. In terms of current revenue and expenditure balance, the fund's revenue and expenditure remain stable. The 2024 Statistical Bulletin on the Development of Human Resources and Social Security shows that in 2024, the urban employees' basic old-age insurance fund had revenues of 7.5 trillion yuan and expenditures of 6.8 trillion yuan, with an overall balance and a slight surplus in the current period. In terms of institutional guarantees, through central planning, the basic old-age insurance for enterprise employees has been nationally integrated. In 2023, the adjustment fund reached 271.6 billion yuan, providing strong support for the disbursement of pensions in difficult provinces. In terms of financial subsidies, the central government has increased subsidies, while local governments have actively implemented expenditure responsibilities to ensure timely and full payment of basic pensions. In terms of long-term reserves, by 2024, the cumulative surplus of the urban employees' basic old-age insurance fund reached 7.1 trillion yuan, and the national social security fund has strategic reserves exceeding 2.6 trillion yuan. This article is sourced from CCTV news. Editor: Chen Wenfang.