The establishment of the old-age insurance system is conducive to the normal intergenerational replacement of the labor force, the retirement of the elderly, the smooth employment of the newly growing labor force and the rationalization of the employment structure.

Conducive to social security

Endowment insurance provides basic living security for the elderly and makes them feel safe. Symposium with Population, National Endowment Insurance and Social Insurance Bureau

With the advent of aging, the proportion of the elderly population is increasing and the number is increasing. Old-age insurance guarantees the basic life of elderly workers, which is equivalent to ensuring the basic life of a considerable number of people in society. For on-the-job employees, participating in endowment insurance means that they have expectations for their future old-age life and are free from worries. In terms of social mentality, more people are stable and less impetuous, which is conducive to social stability.

Conducive to promoting economic development

The pension insurance system designed by many countries links fairness with efficiency, especially the partial accumulation and complete accumulation pension fund raising model. The amount of pension received by workers after retirement is directly related to their wage income and payment during their on-the-job work, which can undoubtedly stimulate workers to work actively during their on-the-job work and improve efficiency. In addition, because the pension insurance involves a wide range and a large number of participants, a large amount of pension insurance can be raised in the operation, which can provide a huge source of funds for the capital market. In particular, the endowment insurance mode of fund system is implemented, and the accumulation of funds in individual accounts is calculated in ten years, which makes the endowment insurance fund larger and provides more funds for the market. Through the operation and utilization of large-scale funds, it is conducive to the state's macro-control of the national economy.