Influence of social security withholding on pension collection

The impact of social security withholding on pension collection is mainly reflected in the following two aspects:

The amount of pension is reduced: the length of interruption of payment directly affects the basic pension level. Because the basic pension is linked to the payment period and the average payment wage index, the longer the interruption time, the shorter the payment period, and the payment wage index during the interruption of payment according to regulations is zero. Therefore, if the insured person stops paying, his basic pension benefits will be greatly reduced.

Affect the time of pension collection: pension adjustment is also closely related to the payment period. The amount of adjustment is often linked to the length of the employee's payment period. If the payment period is long, the amount of pension adjustment will be high. On the contrary, the amount of pension adjustment is low. If the insured person interrupts payment, he cannot enjoy the minimum basic pension when he retires. The longer the payment is interrupted, the less the personal account accumulates, so the personal account pension is low, which may lead to the failure to receive the pension on time when reaching the statutory retirement age.