The relationship between social pension insurance and pensions is a relationship between conditions and purposes, a relationship between process results, and a relationship between responsibilities, obligations, rights, wages and benefits. The general effect is that the more you pay, the more you will receive, and the longer you pay, the more you will receive. In other words, the longer the payment period while working, the larger the payment amount, and the higher the future pension insurance benefits. Therefore, from this point of view, the pension insurance benefits paid after retirement are also generated by funds. Within the interest on the funds, however, just relying on individuals to pay part of the loan interest, no matter how high the loan interest is, cannot support the cost of personal pension.

As employees of the department, the social pension insurance is paid by the employees in proportion. The overall contribution ratio used to be 28%, of which the enterprise contribution ratio is 20%, and the individual employee contribution ratio is 20%. The payment ratio is 8%. In 2019, due to the influence of uncontrollable factors in the economic development of various countries around the world, in order to ensure employment, stabilize employment, and support the future development of small and medium-sized enterprises, my country has carried out a certain degree of reduction in the part of enterprise payment. From the original 20% is reduced to 16%, and the overall contribution ratio is reduced to 24%, of which the employer's contribution ratio is 16%, and the employee's personal contribution remains at the 8% payment level.

Although both companies pay pension insurance, employees pay part of the company's contribution. The main purposes of the two are completely different. The part of the company's contribution is recorded in the overall fund. The overall fund is a steward of social pension insurance. It concentrates the pension insurance funds paid by various units into a larger asset pool. Compared with all parts of the country, this is also a particularly huge benefit, and all the funds stored in it are It is the pension money for retired employees in the future, but if so much money is put into such a big pool, if it is not liquid, it will become a pool of stagnant water. Not only will it not appreciate in value, but it will also fall in price. If this big pool is made bigger and stronger, it will The value of our pension money has increased, so we need to reinvest it to increase the total capital output through long-term investment.

However, since it is pension money and hard-earned money, the investment in this project must be guaranteed to be foolproof. The state implements special personal social security fund investment to invest in pension insurance funds. This type of investment is diversified and at the same time We are extremely careful and cautious. After all, obligations are too important. After years of development and operation, a team mainly engaged in pension insurance fund management has lived up to its trust. In recent years, the investment rate of return is basically guaranteed to be around 8%.

In addition to the part paid by the company, employees themselves also face an 8% deposit ratio. Although this part of the money is managed and operated by the social insurance fund, this money belongs to our personal account. The money above belongs entirely to our assets and is an indispensable part of our future pension insurance. Although the money in a personal account is personal property, it cannot be placed in a financial institution to sleep for a long time. It must also be operated and reinvested. In fact, it is also run by the social insurance fund, which is equivalent to one of their Housekeepers and investment and financial consultants calculate long-term investments every year based on the long-term investments generated by operations and the balance of everyone's personal accounts. Long-term investments are an important part of our own personal account funds. The pension insurance fund formed by part of the increase in the balance of the personal account is also a component of our pension, so this part of the interest expense is actually our pension insurance fund.

After everyone retires, the pension insurance is divided into two parts: pension and personal account pension. The source of pension expenditures is mainly the part paid by enterprises, which is collected through pension funds. Among them, there is also the interest expense generated by the part paid by enterprises. Although pensions are collected from a unified fund formed by part of the contributions paid by the unit where we work, they are also closely related to our contribution base and payment years. As an employee, the amount of individual contributions is the key to measuring the unit’s payment base. For example, if the individual payment amount is 5,000 yuan per month and the individual payment is 400 yuan, then the enterprise should also pay 16% according to this payment base. In fact, it is a monthly payment of 800 yuan. The greater the personal payment base, the higher the department's payment base. The higher they are, the greater their pension benefits will be. The longer the payment period of the individual, the longer the company's payment period. The length of the payment period is also important in measuring the level of pension and retirement benefits. The payment base and payment period are also important factors in measuring the long-term investment level of pension insurance fund operations. Therefore, this has another relationship with the interest on funds. association.

Another part of the pension insurance fund is the personal account pension insurance fund. The so-called personal account pension insurance is absolutely similar to the deposit pension service. The larger the personal payment base, the higher the personal payment amount. The longer the personal payment period, the more personal accounts there will be, the higher the interest on the funds generated, and the higher the personal account pension insurance. The personal account pension insurance itself is the total amount of the principal paid and the interest generated divided by the corresponding number of months, which is the personal account pension insurance paid every month.

In general, the key sources of pension insurance payments to urban and rural residents include three aspects of self-owned funds. The first is the principal paid by the enterprise and the operating income generated, which is called the overall fund of social pension insurance; the second is the principal paid by individuals; the third is the interest on funds or long-term investments generated by personal accounts.