Chinese Retirement Income

[Randy W]

 

 

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

 

 

The phrase "full retirement benefit" usually refers to your benefit the age 66 (in my case), but, yes, I've read it two different ways at two different places in my readings, with regards to HER benefits

 

I need to set up an online account for her and try to run it through the benefits calculator, but that may need to wait until I'm signed up at the end of this month.

[Doug]

Well lets see, in China you pay in yes, and that is done through your company in some cases, but wife says it then goes to the government. Her company will probably pay while she is in the USA, to keep the full retirement amount. This is sort of a retainer, so she will not go back and coach a different team. Otherwise it goes to a lesser amount, very little, unless we keep paying into it every year. She also will have medical. But, her company will pay for 4 years because she has a deal with them to come back and coach after the 4 years.

More and more we are thinking to just stay in the USA, but we will leave the China option open. Her medical may even apply to me as well, because I have done some things for her company I suppose. You know how it is, it is all about scratching each others back, not that I ever expected ANYTHING, really. At least this is what all is said now.

1st Chinese wife lost a bunch of retirement because she had to take a lesser job for a year in order to quit. Also because she came to the USA it became very small now, so she told me. She was 36 or so when we met, so I think too young for her to consider paying all these years. Thinking about, we were married 7 years, and I believe we made that 5 year mark your talking about for SS. Hmm, I guess I could send her an email, ha.

Edited November 19, 2013 by Doug (see edit history)

[johnxiaoying]

Thanks alot for the input guys. My wife has checked into the retirement and will make another visit to the local office tomorrow. Looks like for a cash payment of $3200 she can start receiving a 1200 rmb direct deposit each month. I'll follow up later if it pans out.

[Dennis143]

Thanks alot for the input guys. My wife has checked into the retirement and will make another visit to the local office tomorrow. Looks like for a cash payment of $3200 she can start receiving a 1200 rmb direct deposit each month. I'll follow up later if it pans out.

Sounds like the exact same plan my Leiqin did/has now. Very good investment IMO. Let us know how it pans out.

 

Just a side thought re this... I cannot imagine investing $3000 anywhere here in the US and immediately getting a monthly $150 return unless it were a ponzi scheme or government program.

Edited November 19, 2013 by Dennis143 (see edit history)

[Guest ExChinaExpat]

 

Thanks alot for the input guys. My wife has checked into the retirement and will make another visit to the local office tomorrow. Looks like for a cash payment of $3200 she can start receiving a 1200 rmb direct deposit each month. I'll follow up later if it pans out.

Sounds like the exact same plan my Leiqin did/has now. Very good investment IMO. Let us know how it pans out.

 

Just a side thought re this... I cannot imagine investing $3000 anywhere here in the US and immediately getting a monthly $150 return unless it were a ponzi scheme or government program.

 

 

Great news John! Thanks for sharing success with the China Ponzi scheme.

 

[tsap seui]

Thanks alot for the input guys. My wife has checked into the retirement and will make another visit to the local office tomorrow. Looks like for a cash payment of $3200 she can start receiving a 1200 rmb direct deposit each month. I'll follow up later if it pans out.

Good to see your wife found the right place to go and found out what she needed to do. I remember Wenyan doing that and then it was quickly all set this summer when she was over yonder,...and the funds started getting deposited as soon as she came home. Early congrats.

 

tsap seui

I like happy stories.

[Dennis143]

 

 

Thanks alot for the input guys. My wife has checked into the retirement and will make another visit to the local office tomorrow. Looks like for a cash payment of $3200 she can start receiving a 1200 rmb direct deposit each month. I'll follow up later if it pans out.

Sounds like the exact same plan my Leiqin did/has now. Very good investment IMO. Let us know how it pans out.

 

Just a side thought re this... I cannot imagine investing $3000 anywhere here in the US and immediately getting a monthly $150 return unless it were a ponzi scheme or government program.

 

 

Great news John! Thanks for sharing success with the China Ponzi scheme.

 

 

John hasn't shared any success yet. I will share you ours though. Since 'investing' $3000 back in 2008, Leiqin has since received monthly payments that add up to ~$50,000 over those past 5 years at ~$150/month.

 

How's it work? Beats the hell out of me.

[Guest ExChinaExpat]

 

 

 

Thanks alot for the input guys. My wife has checked into the retirement and will make another visit to the local office tomorrow. Looks like for a cash payment of $3200 she can start receiving a 1200 rmb direct deposit each month. I'll follow up later if it pans out.

Sounds like the exact same plan my Leiqin did/has now. Very good investment IMO. Let us know how it pans out.

 

Just a side thought re this... I cannot imagine investing $3000 anywhere here in the US and immediately getting a monthly $150 return unless it were a ponzi scheme or government program.

 

 

Great news John! Thanks for sharing success with the China Ponzi scheme.

 

 

John hasn't shared any success yet. I will share you ours though. Since 'investing' $3000 back in 2008, Leiqin has since received monthly payments that add up to ~$50,000 over those past 5 years at ~$150/month.

 

How's it work? Beats the hell out of me.

 

 

Dennis, it sounds great, but I don't understand your math. When you write "$3000" I assume because you used the symbol '$', that you mean: US dollars? Yes? Or, do you mean 3000 yuan (reminbe)?

 

Then, to follow, you said you began this in 2008, and received what I assume to be $150.00 USD per month. Correct? If so, that would be a total of 60 months, and $9000.00 USD. So, how do you arrive at 50K USD? What am I missing?

[Randy W]

A $3000 investment (whether RMB or USB) generating $150 every month - that's a 5% return every month, or 60% a year. Where's the money coming from?

 

On the other hand, of course, don't look a gift horse in the mouth.

 

But then a $3000USD investment (the amount Dennis handed his wife, if I read that right) generating ¥150 (taken in China) would be more like 1% a month, or 12% a year - still a VERY good return, especially considering that it began immediately (again assuming that I read THAT right).

Edited November 20, 2013 by Randy W (see edit history)

[Dennis143]

 

John hasn't shared any success yet. I will share you ours though. Since 'investing' $3000 back in 2008, Leiqin has since received monthly payments that add up to ~$50,000 over those past 5 years at ~$150/month.

 

 

 

How's it work? Beats the hell out of me.

~

 

Dennis, it sounds great, but I don't understand your math. When you write "$3000" I assume because you used the symbol '$', that you mean: US dollars? Yes? Or, do you mean 3000 yuan (reminbe)?

 

Then, to follow, you said you began this in 2008, and received what I assume to be $150.00 USD per month. Correct? If so, that would be a total of 60 months, and $9000.00 USD. So, how do you arrive at 50K USD? What am I missing?

 

You are correct, Jesse. I've never been good with math, as you all can see. Yes, ~$3000 invested = $150/month immediate return. $(150 x 12) x 5 = $9000

Edited November 20, 2013 by Dennis143 (see edit history)

[Guest ExChinaExpat]

A $3000 investment (whether RMB or USB) generating $150 every month - that's a 5% return every month, or 60% a year. Where's the money coming from?

 

On the other hand, of course, don't look a gift horse in the mouth.

 

But then a $3000USD investment (the amount Dennis handed his wife, if I read that right) generating ¥150 (taken in China) would be more like 1% a month, or 12% a year - still a VERY good return, especially considering that it began immediately (again assuming that I read THAT right).

 

What I read was for John it's now 3200 (unknown currency) investment. Not sure if that's RMB or USD. Then, she will receive 1200 RMB per month. None of these add up to the 50K USD that Dennis mentioned.

 

So, if one spends 3200, USD to initiate the monthly payments that according to John are 1200 RMB per month, which at current conversion rates about $197.00 USD. If were talking USD here, it would take a little more than 16 months to recoup the original 3200 USD investment. It's a bit confusing as both John and Dennis seem to be mixing currency calculations.

Edited November 20, 2013 by GuangDongExpat (see edit history)

[Randy W]

Basically, that money comes from SOMEWHERE! It would be interesting to know what's behind it, what restrictions there are, who it's available to, how long the income is generated, etc.

[Guest ExChinaExpat]

Basically, that money comes from SOMEWHERE! It would be interesting to know what's behind it, what restrictions there are, who it's available to, how long the income is generated, etc.

 

Yes, it comes from taxes. Keep in mind that China is still classified as socialist so they spread the wealth around. Some Chinese people work and have funds withdrawn every pay period. These funds are deposited into their personal account. Retirement income is available to all Chinese citizens whether they received income or not. So, the money given to those who did not work comes from the Chinese citizens who do work. If you want to read more details, you can search for PDF documents in English that explain Chinese law relating to social insurance.

Edited November 20, 2013 by GuangDongExpat (see edit history)

[Randy W]

 

Basically, that money comes from SOMEWHERE! It would be interesting to know what's behind it, what restrictions there are, who it's available to, how long the income is generated, etc.

 

Yes, it comes from taxes. Keep in mind that China is still classified as socialist so they spread the wealth around. Some Chinese people work and have funds withdrawn every pay period. These funds are deposited into their personal account. Retirement income is available to all Chinese citizens whether they received income or not. So, the money given to those who did not work comes from the Chinese citizens who do work.

 

 

 

If you were to INVEST $3000 at 10% return, after 18 years of compounded interest, it would be worth $18,000, which is enough to generate the $150 every month at the 10% return.

 

Quite a Ponzi scheme, indeed.

[Guest ExChinaExpat]

 

 

Basically, that money comes from SOMEWHERE! It would be interesting to know what's behind it, what restrictions there are, who it's available to, how long the income is generated, etc.

 

Yes, it comes from taxes. Keep in mind that China is still classified as socialist so they spread the wealth around. Some Chinese people work and have funds withdrawn every pay period. These funds are deposited into their personal account. Retirement income is available to all Chinese citizens whether they received income or not. So, the money given to those who did not work comes from the Chinese citizens who do work.

 

 

 

If you were to INVEST $3000 at 10% return, after 18 years of compounded interest, it would be worth $18,000, which is enough to generate the $150 every month at the 10% return.

 

Quite a Ponzi scheme, indeed.

 

 

Socialism is a ponzi scheme. We still don't know if John and Dennis are talking about 3000/3200 reminbe or USD investment. I assume this investment is for those who have not worked in China, as those who did work will have funds withdrawn from their personal account. Not sure about this one though.