That is, individuals and units pay endowment insurance in proportion, the part paid by individuals is accumulated into individual pension accounts, and the part paid by units enters the overall fund. Only after paying 15 years can you enjoy the right to receive old-age insurance. With regard to pension payment, it is decided how much to pay according to the base of the overall fund in different years, and the balance of personal account is paid to individuals according to the proportion specified in this base. The decision of this base is based on the number of people who pay social security and the number of people who receive social security. In other words, a considerable number of people in China did not pay social security due to historical reasons, but enjoyed social security pension benefits as a whole.
The most typical examples are civil servants and some low-income families. Therefore, a person's income source after retirement is not as good as that before retirement. Then the question is, how to make up the difference between pre-retirement income and post-retirement income is actually not difficult. At present, the state and government encourage everyone to pay social security and commercial insurance together. Commercial insurance companies are financial institutions that are spontaneous by the people, recognized by the state and protected by law. Moreover, the insurance law stipulates that commercial insurance companies cannot go bankrupt. Once the capital chain breaks, the CIRC will take a series of measures to reorganize and merge insurance companies, and the insurance policies insured by consumers are also protected by the Insurance Law, and their effectiveness will not be generated by the reorganization and merger of the original insurance companies. In other words, if you want the quality of life after retirement to be unaffected, you may wish to consider supplementing yourself with a commercial endowment insurance if economic conditions permit.