1. Advantages of enterprise annuity:

(1), enterprise annuity improves the treatment of employees and makes enterprises more attractive;

(2) Enterprise annuity embodies that employees and enterprises are bound together, which can improve employees' work enthusiasm;

(3) Enterprise annuity allows employees and enterprises to have tax incentives;

(4) Employees' pensions have increased.

2, the shortcomings of enterprise annuity:

(1), the cost of the enterprise becomes larger;

(2) Employees get less wages;

(3) Account annuity may shrink due to inflation;

(4) Employees who receive a one-time pension after retirement should bear certain taxes and fees.

The contribution ratio of enterprise annuity units shall not exceed 8% of employees' wages, and the contribution ratio of individuals shall not exceed 4%. There is no overall account for enterprise annuity, and all the expenses paid by units and individuals enter the individual enterprise annuity account and belong to the depositor.

Legal basis: Article 2 of the Measures for the Administration of Enterprise Annuity Funds.

These Measures shall apply to the entrustment management, account management, custody, investment management and supervision and management of enterprise annuity funds.

The term "enterprise annuity fund" as mentioned in these Measures refers to the enterprise supplementary endowment insurance fund formed according to the funds raised by the enterprise annuity plan formulated according to law and the income from its investment and operation.