Advantages: 1 The centralized management of social insurance funds by the government has economies of scale, thus reducing costs;

2. Centralized government management can give consideration to social equity, which is conducive to achieving the dual goals of life security and income substitution of the social insurance system;

3. At the same time, centralized government management can reduce the cost of market competition and maximize the national social development goals.

Disadvantages: centralized government management is easy to cause dereliction of duty and inefficiency, and it is also easy to be subjected to political pressure;

The centralized management of the government can invest funds in government bonds and even provide loans to declining state-owned enterprises at the request of the government. The rate of return is usually lower than the market, and the actual rate of return may be negative when inflation occurs.