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Is there a gap in the pension fund? Why do many companies issue pensions as a lower limit?
It is understood that there is almost no gap in the pension fund as a whole. Because the national endowment social security fund, besides our basic endowment insurance, is a major inflow, a considerable part of the income comes from the investment of the social security fund, which also enriches the balance of the social security fund. In addition, the operating profits of central enterprises are constantly transferred every year, at least hundreds of billions to more than one trillion, so this measure has greatly enriched my social security fund.

So in general, there is no gap in the social security fund so far, and the balance is increasing every year. However, the income and expenditure of endowment insurance in various provinces are not optimistic. Because of the income and expenditure of endowment insurance in the province, there will be no so-called profit transfer of state-owned enterprises. Because this is a national unified system, it is said that the balance of endowment insurance in each province basically depends on the income of endowment insurance. If the workforce is relatively small and the retired elderly population is relatively large, it will indeed create a certain gap. In fact, this situation has appeared in many provinces, especially in the central and western regions.

However, due to the implementation of a unified social security fund adjustment system in China, the balance has been well made up, and the income and expenditure gap in some provinces has not been met. Therefore, generally speaking, a thin and large space can be achieved at present, and only a relatively balanced state can be achieved. In addition, this social security fund in each province has also made strong investment, so it can obtain corresponding income and enrich its balance. As for why enterprises should pay endowment insurance according to the minimum standard, this problem is very simple, that is, the problem of labor costs, especially for some private enterprises. If private enterprises reduce labor costs, they can improve their operating profits.

I hope my answer can help you.