Personal pension refers to a pension fund formed by individuals' active savings according to their own wishes and abilities, while endowment insurance refers to a certain proportion of endowment insurance premiums paid by the state, enterprises and other units to the social security fund to provide treatment and security for employees after retirement.
Although both individual pension and endowment insurance are designed to deal with life and medical problems in old age, they are quite different in nature, source, management and benefits. First of all, personal pension refers to a pension fund formed by individuals' active savings according to their own wishes and abilities. It is usually realized by individuals themselves or their families, buying commercial insurance or investment and wealth management products in the market, and the amount and income of the pension are determined and borne by individuals themselves. The old-age insurance is that the state, enterprises and other units pay a certain proportion of the old-age insurance premium to the social security fund, which is managed and operated by the state in a unified way. The insured personnel pay the insurance premium according to the prescribed standards and obtain a certain scale of basic pension. Secondly, the sources of personal pension and endowment insurance are different. Personal pension is formed by individual's independent savings or investment and financial management, while old-age insurance is paid by the state, enterprises and other collectives to the social security fund, thus forming a large old-age security system, which is uniformly managed and supervised by the state. Thirdly, individual pension and endowment insurance are managed in different ways. The management and operation of personal pension is usually completed by insurance companies or other financial institutions, while endowment insurance is managed and supervised by the state in a unified way, and managed according to the interests and policy orientation of the public. Finally, there are also differences in the interests of individual pension and endowment insurance. The amount and income of individual pension are determined and borne by individuals themselves, so there may be greater risks, but it also has the advantages of relative flexibility and high return; The endowment insurance is managed and operated by the state in a unified way, and the pension is calculated according to the prescribed standards. Although it is relatively safe, it also lacks the corresponding flexibility and selectivity.
how should I choose personal pension or endowment insurance? Individuals need to decide whether to choose personal pension or endowment insurance according to their own specific conditions. If individuals have strong management and investment capabilities and are willing to take certain risks, they can consider buying personal pensions; If you want to be safe and sound, and you don't have enough confidence in personal finance, you can choose to participate in endowment insurance. Of course, you can also combine the two methods and make comprehensive consideration and choice according to your actual situation.
There are great differences between individual pension and endowment insurance in nature, source, management and benefits. Individuals should choose whether to buy personal pension or participate in endowment insurance according to their own economic strength, investment and financial ability and risk preference, and make comprehensive consideration and choice in combination with the actual situation in the specific operation.
Legal basis:
Article 15 of the Social Insurance Law of the People's Republic of China is composed of overall pension and individual account pension. The basic pension is determined according to factors such as individual cumulative payment years, payment wages, average salary of local employees, personal account amount, average life expectancy of urban population, etc.