Under the strong pressure of the working class struggle, Germany promulgated the Old Age and Disability Insurance Law in 1889, which marked the birth of modern social endowment insurance. From the end of 19th century to the first half of 2th century, all European countries have established compulsory old-age insurance system. In the 193s, an unprecedented economic crisis broke out in the United States, and many retirees were unable to maintain a basic life. To this end, the United States enacted the Social Security Law in 1935, and established a whole set of insurance system for the elderly and widows, with the aim of ensuring that all workers from Taiwan and France can enjoy the lowest level of retirement income.

In the early days of the founding of New China, the state began to establish the old-age insurance system for urban workers. The State Council promulgated in 1951 and revised and implemented the Labor Insurance Regulations of the People's Republic of China in 1953. This regulation has made detailed provisions on social insurance such as pension for employees of state-owned enterprises. Enterprises pay monthly insurance premiums equivalent to 3% of the total wages of enterprise employees, of which 3% is turned over to the National Federation of Trade Unions as the general labor insurance fund, and 7% is deposited in various enterprise trade unions. At that time, the stipulated pension was 5%-7% of the employee's own salary. In 1955, the State Council promulgated the old-age insurance measures for the staff of state organs and institutions. In 1958, the old-age insurance system for employees of enterprises, institutions and state organs was unified. In this way, the unified old-age insurance system for urban workers in China has basically been established nationwide.

Further reading: How to buy insurance, which is better, and teach you how to avoid these "pits" of insurance.