Personal contributions and personal accounts are important parts of the old-age insurance system. Personal contributions are the premise of participating in the insurance, while personal accounts record personal contributions and rights.

I. Individual contributions of endowment insurance

Individual contributions of endowment insurance refer to the fees paid by the insured to the endowment insurance fund according to the prescribed payment ratio and standard. Personal contribution is one of the important sources of funds for the old-age insurance system, and it is also the premise for the insured to enjoy the old-age insurance benefits.

in the process of payment, the insured person needs to calculate the pension insurance fee that should be paid according to his own income and the payment standard in his region, and pay it in full and on time. The amount of individual contributions is usually linked to the individual's salary income to ensure the fairness and sustainability of payment.

II. Personal account for endowment insurance

Personal account for endowment insurance refers to a special account set up for each insured person, which is used to record information such as individual payment, accumulated payment amount and the balance of personal account. The establishment of personal accounts helps the insured to know their own contributions and rights, and also facilitates the management and supervision of the use of endowment insurance funds.

the funds in personal accounts mainly come from individual contributions and investment income. Personal contributions will be transferred to personal accounts according to a certain proportion, which will become the personal rights and interests of the insured. At the same time, the funds in personal accounts will also be invested and operated to obtain certain income and increase the accumulation of personal accounts.

when the insured reaches the statutory retirement age, the balance in the personal account can be collected in the prescribed way. Under normal circumstances, the insured can choose to receive the balance of personal account in one lump sum or in installments to supplement the living expenses after retirement.

To sum up:

Personal contributions and personal accounts are important components of the old-age insurance system. Personal contributions are the premise of participating in the insurance, while personal accounts record personal contributions and rights. Through individual contributions and the establishment of individual accounts, the old-age insurance system can better protect the retirement life of the insured and realize social equity and sustainable development.

Legal basis:

Article 1 of the Social Insurance Law of the People's Republic of China

stipulates:

Employees shall participate in the basic old-age insurance, and both the employer and the employees shall pay the basic old-age insurance premium.

individual industrial and commercial households without employees, part-time employees who have not participated in the basic old-age insurance in the employer and other flexible employees can participate in the basic old-age insurance, and individuals pay the basic old-age insurance premium.

Article 12 of the Social Insurance Law of the People's Republic of China

stipulates:

The employing unit shall pay the basic old-age insurance premium in proportion to the total wages of its employees as stipulated by the state and record it in the basic old-age insurance pooling fund.

employees should pay the basic old-age insurance premium according to the proportion of their salary stipulated by the state and record it in their personal accounts.