What are the advantages and disadvantages of self-funded social security?

2. All social security fees are paid by individuals. If he dies before retirement, the endowment insurance for urban and rural residents can be refunded in full. If you are insured as a flexible employee in cities and towns, the social security of urban employees cannot be returned in full, only the balance of personal accounts can be returned. If it is attached to the employer to pay social security, it has been included in the social security pooling fund and cannot be returned, which belongs to the social security agency for overall use.

First of all, the benefits of self-funded social security:

1. Self-funded social security is paid by individuals as flexible employees in local accounts, and the social security fee that individuals should pay when purchasing social security = payment base * payment ratio. Self-funded social security can only buy old chain insurance, maternity insurance, medical insurance, and cannot participate in work-related injury, unemployment and other insurance.

2. Paying social security at your own expense is equivalent to buying a guarantee for your future, such as endowment insurance and medical insurance, which will be used for life, and the provident fund can save you a lot of money when buying a house. It can also reduce the burden on children. After all, there are more and more only children now, and the greater the responsibility. If they have a pension when they are old, they can reduce their children's financial burden to some extent.

You can contribute to the country and society, because the money you pay now is for the retired people, which means that you are helping the country to support the elderly and stabilizing the social order to some extent.

Second, the disadvantages of self-funded social security:

1. If you pay all kinds of insurance in social security at your own expense, you will pay more insurance premiums. Only 40% of the money you pay will go into your personal account, and the remaining 60% will go into your overall account, that is, pay salaries to employees who are now retired.

2. Individuals without work units need to pay all social security fees themselves, with a minimum of six or seven hundred a month. If it is a city with a high average wage level, the monthly premium may be more than 1000. Then one year later, you need to bear more than 10 thousand social security expenses yourself, and the economic pressure is even greater. To enjoy lifelong medical insurance, medical insurance must be paid for 25 years before you can enjoy it. After such a long time, the minimum social security fee will be hundreds of thousands; If the insured person is cut off due to personal economic pressure, he may not be able to enjoy medical insurance during the cut-off period.