The difference is as follows:

Personal account system

In fact, personal account system is a personal savings account in general, but it is only a compulsory savings in the form of pension, in this case it is called personal account system. The key words of personal account system are: voluntary opening; Tax preference; Personal account, national management; Investment in pension financial products; Retirement is desirable.

Personal account system refers to the account of personal pension based on the account system, which is a personal and private account. In addition, the state will also give tax support to individual pensions and pay less taxes. In addition, the individual pension is voluntarily opened. Once it is opened, the money inside cannot be taken out casually, and it can only be used after retirement. To sum up, in the personal pension account, the more you pay, the more you will receive when you retire.

complete accumulation system

complete accumulation system, also known as fund system, is a social security fund raising model based on the principle of long-term vertical balance. This model requires workers to raise social security funds by saving during the whole employment period, and establish personal accounts as long-term storage and accumulation funds, and the ownership belongs to individuals, and they can receive them once or on a monthly basis when they meet the conditions for receiving them.

the biggest feature of the complete accumulation model is that it requires a balance between the total contributions (including contributions, investment income, government subsidies, etc.) of each insured person during the working period and the total pension insurance benefits received after retirement, that is, the pursuit of long-term balance.

under the complete accumulation mode, the personal pension insurance fund accounts accumulate for a long time and a large amount, so the fund is at great risk of depreciation due to inflation. In addition, the changes of interest rate, wage growth rate and fund investment management level (income level and management cost) also have great influence on the actual security level of social security funds.

In the social security fund with complete accumulation mode, due to the small proportion of social pooling, the income redistribution function of this mode is very weak, which plays a small role in regulating the level of security, and the inconsistency between prediction and reality often occurs, which needs to be adjusted in time.