Advantages and disadvantages of purchasing social security

The benefits of purchasing social security are as follows:

1. If your parents are ill, especially seriously ill, you may need a lot of money. At this time, if you choose to invest, at least 90,000 yuan of principal can be used as a backup;

2. In the case of unwilling to face it, if the parents suddenly die, although the personal part of the pension will be returned, it is only about 8% (about 7,200 yuan), that is to say, when losing relatives, they also lose the pension funds prepared for their parents;

3. If parents' total savings are small, they need to use these savings to buy social security, and if children need to provide funds for this, they will increase their burden, especially under their own family conditions;

4. The amount of pension received at retirement is uncertain, because it is related to the local average social wage, and the amount may be different in different regions.

Economic impact of social security:

1, increase personal burden: social security needs to be paid by both individuals and enterprises, and individuals with lower incomes may feel certain economic pressure;

2. Affect the cost of enterprises: enterprises paying social security for employees will increase labor costs, which may become a burden for enterprises with low profits or poor financial status;

3. It may affect employment decision: some individuals may choose informal employment or avoid employment because of social security payment, thus affecting their long-term social security rights and interests;

4. Operational risk of social security fund: Social security fund needs to maintain and increase its value through investment, and there are certain market risks. If it is not well managed, it may affect the stability and sustainability of the fund.

To sum up, although purchasing social security can provide parents with certain medical care and old-age security, they may be short of funds in the face of emergencies such as serious illness, and the limited pension returned after the death of their parents will also increase the financial burden of their children, especially in the case of ordinary family conditions, and the uncertainty of old-age care also increases the difficulty of future planning.

Legal basis:

Labor law of the people's Republic of China

Article 72

The social insurance fund shall determine the source of funds according to the types of insurance and gradually implement social pooling. Employers and workers must participate in social insurance and pay social insurance premiums according to law.