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These days, the issue of housing pensions has caused a huge uproar in public opinion.The most common question among the public is why they have to pay pension for their house when their own pension is not yet settled?Why are the generations born in the 80s and 90s so miserable?

Due to the controversy in public opinion, the relevant departments also urgently made an explanation. This housing pension will not increase the burden on the masses, and no funds will be collected from individual households. Where does the money come from? It takes money to check the house and do repairs. If it does not increase the burden on the masses, who will pay for it?

According to official statements, the previous housing maintenance fund has accumulated a surplus of more than 1 trillion yuan after years of accumulation.This is a huge silent capital.For many years, this money has not been spent, and no one has spent it. According to the bank, more than 90% of the national housing maintenance fund has not been spent. It is lying in the bank's account, earning interest, and with new owners constantly paying in, this money has accumulated more and more, exceeding 1 trillion.

Why doesn't anyone spend this money? There is one main reason:It is earmarked for a specific purpose.The housing maintenance fund paid by the owners of a community can only be used for the maintenance of the community. However, China's urbanization has only been going on for 30 years, and most high-rise buildings are only more than 20 years old. Most of them are still relatively new and will not have a significant impact on living. So why should the house be repaired if it is in good condition? No one is willing to repair it. Therefore, the money has been saved.

According to the original rules, this money should be saved until after 2030, when these communities that have paid housing maintenance funds need maintenance, then it can be used. But now, the rules have changed.

A housing pension has been introduced which will replace the housing maintenance fund.This 1 trillion housing maintenance fund has been incorporated into the housing pension system. What is the difference between the two? Simply put, in the past, funds were earmarked for specific purposes. The housing would be repaired in the community that paid the money. If the community did not repair the housing, no one could touch the money. But now it is different. The housing pension has broken the earmarked purpose. Its usage rules are fully connected to the personal pension system. What does this mean? There are two main changes:

First, the accounts are unified and managed in a unified way. No matter what is yours or mine or his, the local government will redistribute it. How to use it? Which community should it be allocated to? It is no longer decided by the owners, but by the local government. Second, it is pay-as-you-go. The money collected can be directly invested in the renovation of the old communities now, without having to wait until later to spend it. The new money will be collected for the renovation of the old communities in the future.

This is just like pensions. What you pay now is to support the elderly now, and the elderly in the future will be supported by the children in the future. The same is true for housing for the elderly.

Why do we do this? There are two main reasons: First, the living conditions in some old communities are really not good and need to be repaired and renovated. Some people asked, if the houses are no longer good, why not demolish them? There is no way, the local government has no money and cannot afford to demolish them. Second, old house renovation can re-stimulate the development of the real estate market. Real estate has always been one of the pillar industries of the national economy. It can drive the development of various industries such as steel, cement, construction, and home appliances. The new house market has gradually become saturated, and the renovation of old houses will be the norm in the future Chinese real estate market.

So where does the money for renovation come from? There are two main channels: First, housing pension. That is, to activate the 1 trillion housing maintenance fund. This money has been dormant for more than 20 years. It must be used to boost the economy. Second, national financial subsidies. In the field of old-town renovation, the national finance has a large budget every year. The central government is not short of money. The real shortfall is the local government.Housing pensions are intended to fill the funding gap of local governments.

In this case, who is at a disadvantage and who is benefiting? It is the same as pension. Those born in the 1980s and 1990s who have already paid into the housing maintenance fund are relatively at a disadvantage, while retired elderly people living in old residential areas have enjoyed the benefits of housing pension in advance.