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Chinese Retirement Income


Guest ExChinaExpat

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Guest ExChinaExpat

Leiqin was never employed when she lived in China. After we married and she was pushing 50 yrs old, she asked if I would give her $3000 to send to her sister so that she could buy into a Chinese retirement account. She needed $3000 in order to be fully vested and it had to be paid into before she turned 50.

 

I was once told that she gets ~1000 RMB/month, but not quite sure what the amount is. I do know is that when she returns to China the only thing we pay for outright is her plane ticket, so that investment is paying off nicely.

 

What's this? You mean if a Chinese citizen never works in China that they are still entitled to retirement income if they somehow buy into it?

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Leiqin was never employed when she lived in China. After we married and she was pushing 50 yrs old, she asked if I would give her $3000 to send to her sister so that she could buy into a Chinese retirement account. She needed $3000 in order to be fully vested and it had to be paid into before she turned 50.

 

I was once told that she gets ~1000 RMB/month, but not quite sure what the amount is. I do know is that when she returns to China the only thing we pay for outright is her plane ticket, so that investment is paying off nicely.

 

What's this? You mean if a Chinese citizen never works in China that they are still entitled to retirement income if they somehow buy into it?

 

What I posted above is about all that I know. I do know that since I gave up the $3000 she's been able to have her own money to pay for her expenses when she returns to China.

 

My interest was piqued reading the earlier post saying there are thousands of different retirement plans pools.

Edited by Dennis143 (see edit history)
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My wife has never considered buying into the retirement plan - I'm not sure why, but she's over 50 now, so it may be out of the question. She did get her brother to "hire" her on at his drug store at one point - I'm not sure what ever came of that.

 

Her retirement plan for now is the parking space - I guess she figures that with me (and the car) gone, she can sell it at a pretty decent profit.

 

All that seems to make a trip back to the U.S. to finish out the remaining 15 months on her 5 years to finish out her eligibility for Social Security seem much more obligatory, even though I dread being away from home for so long.

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She says that she IS buying in to the retirement plan, but that she must do this for 15 years before she is eligible to "retire" at age 62 (apparently, she started at age 47).

 

She also tells me that her insurance is available ONLY if she's buying in to the retirement plan.

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Wenyan tells me that she was very lucky with the amount she paid in to get her insurance and retirement. Said she paid in a third of what some of her friends paid for the same thing. She got it all lined up on her trip to Chinar this summer and the money has started coming to her bank account over yonder, where it'll just add to the max allowed loot we send over each year to make up a small piece of the nest egg she'll have for when I go off to play bass in the Stevie Ray Vaughan and Jimi Hendrix rubber band...lol

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John, my wife couldn't tell me anything other than "retirement business, every city have many retirement business you can go to".

 

Like others have said, what they don't know about your wife's citizenship won't hurt them. Just get the retirement funding started first, then get the US citizenship. Yeah, you're fudging the rules and yes they will stop her retirement the day they find out her US citizenship, but she DID work for that money and she did pay into it.

 

I highly doubt my wife will ever think twice about becoming a US citizen. She would like to work here and pay taxes here but she can't seem to get a job. She's got all these apartments she is the landlord of but as the SS office explained to us, she can't pay into SS out of rent money, and they won't let her pay into SS to fund a SS retirement. So, she will just pay straight taxes on the rentals when that time comes. She really didn't come to America to get a US passport, has nothing against US citizenship, but she will just head back to China when I leave to go shake hands and laugh with Kurt Vonnegutt, Jr. and there is no reason to muddy the waters with the ease of her doing things in China,in that eventuality. I do my best to help set her up so that in her old age she can be the happiest and most comfortable old small rabbit in Chinartucky.

 

Good luck with getting your wife's retirement and insurance started. It took Wenyan some time and hassle but it worked out really well...they will be just another piece of the pie.

 

tsap seui

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. . .

 

 

I highly doubt my wife will ever think twice about becoming a US citizen. She would like to work here and pay taxes here but she can't seem to get a job. She's got all these apartments she is the landlord of but as the SS office explained to us, she can't pay into SS out of rent money, and they won't let her pay into SS to fund a SS retirement. So, she will just pay straight taxes on the rentals when that time comes. She really didn't come to America to get a US passport, has nothing against US citizenship, but she will just head back to China when I leave to go shake hands and laugh with Kurt Vonnegutt, Jr. and there is no reason to muddy the waters with the ease of her doing things in China,in that eventuality. I do my best to help set her up so that in her old age she can be the happiest and most comfortable old small rabbit in Chinartucky.

 

. . .

 

 

tsap, isn't she eligible for SS benefits based on your work record anyway? That is, once she reaches retirement age, 1/2 of your benefit, plus then full survivor's benefits once you croak? And can continue after moving to Chinartucky as long as she spent 5 years in the U.S. while married to you?

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A couple of questions on this China retirement and insurance. We're in China for another two weeks. What government agency would she need to talk to, to get this setup? Also, does anyone know how this China retirement would be affected once she becomes a US citizen?

 

I don't have any info for John here, but I hate to skip over his question if someone else does.

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Guest ExChinaExpat

 

A couple of questions on this China retirement and insurance. We're in China for another two weeks. What government agency would she need to talk to, to get this setup? Also, does anyone know how this China retirement would be affected once she becomes a US citizen?

 

I don't have any info for John here, but I hate to skip over his question if someone else does.

 

 

There are Social Insurance offices in most major cities of China. I know when I was undergoing my medical challenge in Nanjing that my claim was handled by these offices as directed by Chinese law. New laws were implemented in 2012, which changed and enhanced the previous laws. New laws also require companies to cover foreigners. You can find more information about the law by searching for Chinese Social Insurance.

 

 

 

Mandatory Social Welfare Benefits for Chinese Employees
Posted on February 21, 2012 by China Briefing
An overview of social welfare obligations and costs for employers of Chinese staff
Feb. 21 – This week, China Briefing is running a special human resources theme concerning the employment of staff in China. We will be featuring topics such as regional industry clusters, minimum wage levels compared on a national basis, employee termination procedures and costs, in addition to looking at how to arrange employment for Chinese nationals overseas.
Today we look at the various issues that employers must consider when hiring permanent staff in China, and outline the full social security package that must be made to Chinese employees.
New Social Insurance Law
On July 1, 2011, China implemented its new Social Insurance Law (“new law”) with three main objectives in mind:
Take more direct control over the funds contributed to the system;
Tighten administration so that companies are compelled to make contributions in full; and
Improve the overall social security safety net for Chinese residents.
Edited by GuangDongExpat (see edit history)
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. . .

 

 

I highly doubt my wife will ever think twice about becoming a US citizen. She would like to work here and pay taxes here but she can't seem to get a job. She's got all these apartments she is the landlord of but as the SS office explained to us, she can't pay into SS out of rent money, and they won't let her pay into SS to fund a SS retirement. So, she will just pay straight taxes on the rentals when that time comes. She really didn't come to America to get a US passport, has nothing against US citizenship, but she will just head back to China when I leave to go shake hands and laugh with Kurt Vonnegutt, Jr. and there is no reason to muddy the waters with the ease of her doing things in China,in that eventuality. I do my best to help set her up so that in her old age she can be the happiest and most comfortable old small rabbit in Chinartucky.

 

. . .

 

 

tsap, isn't she eligible for SS benefits based on your work record anyway? That is, once she reaches retirement age, 1/2 of your benefit, plus then full survivor's benefits once you croak? And can continue after moving to Chinartucky as long as she spent 5 years in the U.S. while married to you?

 

Right you are Randy. On all accounts. Plus she will have my DIC (Dependants Indemnity Compensation) from the VA and the rent from 14 apartments in the US and another apartment in China. The rentals in the US will be collected and direct deposited by a real estate overseer. That's why I was saying her Chinese retirement will be the smaller slice of the pie.

 

Do you think you will move back for that 15 months so your wife can collect your SS? That has to be a tough one to consider. In my wife's case it will amount to almost $2,500usd a month. I jes couldn't RIP in a proper manner knowing I had let dear Uncle Sam get off the hook on that amount, and I'm sure you don't want to let him either.

 

tsap seui

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tsap, isn't she eligible for SS benefits based on your work record anyway? That is, once she reaches retirement age, 1/2 of your benefit, plus then full survivor's benefits once you croak? And can continue after moving to Chinartucky as long as she spent 5 years in the U.S. while married to you?

 

Right you are Randy. On all accounts. Plus she will have my DIC (Dependants Indemnity Compensation) from the VA and the rent from 14 apartments in the US and another apartment in China. The rentals in the US will be collected and direct deposited by a real estate overseer. That's why I was saying her Chinese retirement will be the smaller slice of the pie.

 

Do you think you will move back for that 15 months so your wife can collect your SS? That has to be a tough one to consider. In my wife's case it will amount to almost $2,500usd a month. I jes couldn't RIP in a proper manner knowing I had let dear Uncle Sam get off the hook on that amount, and I'm sure you don't want to let him either.

 

tsap seui

 

 

Yeah, it's looking like a real good investment -she'll be able to draw spousal benefits (½ of my own) while I'm still alive, so I'll see the return on that also.

 

One last visit back to the U.S. would be nice, but I'm really dreading 15 months away from home. Under the SS regulations, we're supposed to actually LIVE somewhere (at a somewhat fixed address), so it's not exactly an extended vacation.

 

We have 10 years before she hits her retirement ages, so we'll see what we come up with on that.

 

I had thought I was supposed to go to Guangzhou to sign up, but now it looks like it's all online and the nearest SS office is in Manila. I'll have to ask my questions by email. But I'm all ready to sign up myself - all I need to do is click on that "submit" button once it's 90 days before my birthday.

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Yuan continued to pay into the system by "working for a friend" last year. But she heard the age was going up and stopped paying into the system. I think she said that she had 6 more years until she had enough money in the system. If she can indeed start getting money back at age 50 it might be worth the investment to pay for the last 6 years. I wonder if we can just make a one time payment and be done with it altogether. I will have to ask her tonight about this.

 

I will also have to tell her about being able to receive half the amount of my SS when I do eventually retire.

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Yuan continued to pay into the system by "working for a friend" last year. But she heard the age was going up and stopped paying into the system. I think she said that she had 6 more years until she had enough money in the system. If she can indeed start getting money back at age 50 it might be worth the investment to pay for the last 6 years. I wonder if we can just make a one time payment and be done with it altogether. I will have to ask her tonight about this.

 

I will also have to tell her about being able to receive half the amount of my SS when I do eventually retire.

 

 

She is eligible for that when SHE eventually retires - at age 62 to 70.

 

Half of EXACTLY what I'm not entirely sure. I'll be drawing my own benefits at age 62 (this February - first check in March), so I'm unclear on whether she gets half of THAT amount or half of my FULL retirement benefits. It's also a function of when SHE begins drawing her benefits - she'll get more by waiting until her full retirement age.

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Yuan continued to pay into the system by "working for a friend" last year. But she heard the age was going up and stopped paying into the system. I think she said that she had 6 more years until she had enough money in the system. If she can indeed start getting money back at age 50 it might be worth the investment to pay for the last 6 years. I wonder if we can just make a one time payment and be done with it altogether. I will have to ask her tonight about this.

 

I will also have to tell her about being able to receive half the amount of my SS when I do eventually retire.

 

 

She is eligible for that when SHE eventually retires - at age 62 to 70.

 

Half of EXACTLY what I'm not entirely sure. I'll be drawing my own benefits at age 62 (this February - first check in March), so I'm unclear on whether she gets half of THAT amount or half of my FULL retirement benefits. It's also a function of when SHE begins drawing her benefits - she'll get more by waiting until her full retirement age.

 

Randy, it's my understanding that whatever age we retire at (if we retire before full retirement age)...THAT is our "full" retirement benefit as we are locked into whatever benefit we get should we retire before our full retirement age. I don't think the benefit changes once we reach full retirement age 66 or 67. So, our wives would get half of our benefit as it stands, not what it would have been if we had waited until full retirement age. Then, like you say, they get penalized by different percentages at the age they decide to retire at should they decide to retire earlier than their FULL retirement ages.

 

I'm pretty certain that is how it works, but could be wrong as in my case I got SSDI at age 57 due to PTSD and the agent orange heart. SSDI benefits start out as if I had retired at my full retirement age and carries on until age 65 when it becomes regular SS. The benefit still paid out as if I had waited until full retirement age.

 

tsap seui

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