The difference between occupational annuity and endowment insurance
1, different definitions: old-age insurance is one of social security, which belongs to compulsory insurance. Occupational annuity is supplementary old-age insurance, not social security or commercial old-age insurance.
2. Compulsory distinction: Old-age insurance is purchased by every unit for employees, while occupational annuity is a welfare, and both employees and units have the right to decide whether to purchase it.
3. Different participants: Old-age insurance is applicable to most people in China, and anyone who works in a regular unit can buy old-age insurance. Occupational annuities are only applicable to employees of government agencies and institutions.
4. Different payment ratios: the payment ratio of endowment insurance is 20% for the company and 8% for the individual. The occupational annuity is paid by the unit at 8% of the total wages of the unit, and the individual pays at 4% of the wages paid by himself.
5. Different sources of expenses. The source of endowment insurance expenses is generally shared by three parties or units and individuals to achieve extensive social mutual assistance; Occupational annuity payment shall be borne by both the employer and the employee.
Occupational annuity collection method:
1, month. Similar to the old-age insurance, you receive an occupational annuity every month after retirement, and the occupational annuity will be directly credited to the designated account. This is a common way to collect occupational annuities at present. Under normal circumstances, they receive occupational annuities on a monthly basis.
2. One-time collection. If the insured person has settled abroad and has not reached the statutory retirement age, the occupational annuity will not continue to be paid, and the balance in the occupational annuity account can be withdrawn at one time. If you reach the statutory retirement age, you can also withdraw the occupational annuity at one time. In addition, if the insured dies unfortunately, he can also withdraw the occupational annuity at one time.
3. Occupational annuity inheritance. If the insured dies unfortunately, but has not reached the statutory retirement age, his legal heir may inherit according to law.
Generally speaking, if employees work in institutions, they will pay an additional occupational annuity on the basis of paying the basic old-age insurance, and they can receive more pensions when they retire than those who have not paid the occupational annuity.