Endowment insurance is one of the types of social security, and its main purpose is to protect the basic needs of retirees. The payment of social security is mandatory, and employers need to pay social security fees together with workers in a certain proportion. Take the endowment insurance as an example. China's basic pension implements the combination of overall account and individual account. The company pays 16%, and the individual pays 8% into the personal account. Only when the overall account and individual account pay at the same time can the endowment insurance be considered as payment. Today, let's take a look at what the overall account does.

One is to pay the basic pension.

As we all know, pension consists of basic pension and personal account pension, in which personal account is used to pay personal account pension, and overall account is responsible for paying basic pension, transitional pension, funeral subsidy, pension expenses and the annual increase of pension benefits by the state.

The second is to supplement the payment of personal account pensions.

Pension must meet the following two conditions to be eligible. First, it is necessary to reach the national statutory retirement age, with female employees reaching 50 years of age, female cadres reaching 55 years of age and male employees reaching 60 years of age; Secondly, the pension insurance needs to be paid for 15 years. China's old-age insurance is lifelong, which means that as long as you are alive, you can always receive a pension until you die. After all, the funds in personal accounts are limited, which is equivalent to personal private property. If there is a balance in your personal account after your death, the remaining money can be inherited by your heirs. If the money in your personal account has been collected while you are alive, then all your future pensions will be paid from the overall account.

Third, it has the function of "adjustment"

The money in the overall account will generally be managed by the social security fund, and the balance of the endowment insurance fund should be maintained in all overall areas. Because there is a certain gap between the number of insured persons and the number of retirees in different provinces, the overall accounts in some places are in a state of loss, and it is impossible to pay pensions in full and on time, and the balance of accounts in some places is relatively large. At this time, it can be adjusted by means of "supplementing the poor with the rich" to ensure the basic life of retirees everywhere.