The influencing factor of social security fund raising mode lies in the income distribution gap between different groups. If it is a pay-as-you-go model, high-income people still have a high income balance after paying social security, which can be adjusted at any time according to changes in interest rates. If it is completely accumulated, it is very suitable for ordinary people. Pay now and prepare for the future life. If it is partial accumulation, there will be some capital accumulation, and the risk of investment will be greatly reduced.

What are the financing methods of social insurance funds?

1. Pay-as-you-go system: This model is to raise funds according to the principle of horizontal balance, and the social security organs raise funds from the society according to the insurance benefits that need to be paid;

2. Complete accumulation system: This model is to raise funds according to the principle of long-term vertical balance. Its essence is the personal intra-generational income redistribution system. This means that employers and employees pay a certain amount of funds on time every month and count them into personal accounts to ensure that employees retire in the future or withdraw funds according to legal conditions. As long as the conditions for withdrawing funds are met, individuals can receive them in one lump sum or on a monthly basis;

3. Partial accumulation system: This model is a combination of pay-as-you-go system and complete accumulation system, taking into account the principle of horizontal balance and long-term vertical balance to raise funds. This model is more flexible and convenient, and is more conducive to ensuring the normal life of ordinary people.