Institutional arrangements to ensure the living security of citizens in trouble due to old age, illness, disability, widowhood, unemployment, death, disasters and other reasons.

1. Establishing and perfecting the legal system of social security is conducive to standardizing investment and financing and balancing social supply and demand. Social security funds come directly from insurance taxes and assets, which has high stability. Through decades of accumulation, social security funds can play a huge role in a country's financial application.

2. Subjectively, social security fund is used to preserve and increase value, but objectively, it has the function of adjusting investment and transforming industrial structure. It is a powerful means of national planning and macro-control of the economy.

3. Stimulated the improvement of effective social demand and promoted economic recovery to a certain extent; When the economy is prosperous, the expenditure of social security funds will decrease accordingly. The corresponding expansion of social security fund restrained the rapid expansion of social demand, and finally balanced the total social demand and total supply.