First of all, social insurance is mandatory.
Social insurance is divided into two categories, the basic pension insurance for employees and urban and rural residents, and the retirement age for the two types of insurance is different.
The retirement age for basic employee pension insurance is 50 or 55 for women and 60 for men. The retirement age for urban and rural residents' pension insurance is 60 for both men and women.
Employee basic pension insurance, as long as the pension insurance contributions for 15 years, in the event of loss of working capacity can be for retirement or retirement treatment, some places are receiving invalidity allowance. The retirement age for those who have lost the ability to work is 50 for men and 45 for women, and those who have lost the ability to work before that age can be retired or receive invalidity benefits.
(1) Urban and rural residents' old-age insurance contributions are low, the treatment is low. The contribution bracket for urban and rural residents' pension insurance ranges from 100 yuan to several thousand yuan per year. However, this is a kind of welfare insurance, and individuals will certainly not lose money by participating in the insurance. Individuals who pay pension insurance will also enjoy state subsidies, with a state subsidy of 30 yuan for a contribution of 100 yuan. The higher the contribution level, the higher the state subsidy. All the fees paid by the individual and the state subsidy are put together in the individual account of the pension insurance. In the event of death without receiving all the money in the individual account, the balance of the individual account can be inherited by heirs in accordance with the provisions of the Social Insurance Law, that is, there will be no loss of capital.
But it is also an indisputable fact that the current basic pension entitlement for urban and rural residents' pension insurance is low, as is the low interest rate on the individual account booking. In fact, the state only began to promote the pilot new rural pension insurance system in 2009, the pilot urban residents' pension insurance system in 2010, and the merger of the two types of pension insurance into urban and rural residents' pension insurance in 2014. That is to say, the insurance has been in place for only about 10 years now. The state also stipulates that before the local establishment of the new rural pension insurance system and the urban residents' pension insurance system, individual residents who have reached the age of 60 can enjoy basic pension benefits directly without making contributions.
The current national minimum basic pension entitlement is 88 yuan a month. Localities can make additional subsidized boosts on top of the national minimum basic pension. Currently, it is 103 yuan in Henan Province, 90 yuan in Heilongjiang Province, 118 yuan in Shandong Province, 123 yuan in Fujian Province and 170 yuan in Guangdong Province. The difference between the various regions is quite large. Especially in Beijing and Shanghai, it is 800 yuan and 1010 yuan respectively. But according to information from the Ministry of Human Resources and Social Security, the per capita monthly treatment of urban and rural residents' pension insurance at the end of July 2019 was only 162 yuan.
(ii) Employee pension insurance contributions are high, the treatment is high, and will increase every year. If you want to effectively avoid future longevity risks, it is recommended to participate in employee pension insurance. Now the minimum amount of money is generally seven or eight thousand dollars a year, the amount of money to contribute will be based on the average social wage increases every year, 15 years almost need to prepare 15 or 16 million dollars. Therefore, to participate in the employee pension insurance to have a certain affordability and have a long time to pay contributions, or affect the retirement can be a problem.