What's the use of social security balance

It plays an important role in personal pension, medical security, financial planning and social fairness and stability.

First, old-age security

The most direct function of social security balance is to provide economic security for individuals' old-age life. Through the accumulation of long-term contributions, individuals can withdraw their pensions from social security accounts after reaching the legal retirement age to maintain their basic living standards. This system design helps to ensure that the elderly have a stable source of income and improve their quality of life.

Second, medical security.

The balance of social security also involves medical security. When paying the medical insurance fee, part of the funds will enter the personal account, forming a social security balance. This part of the funds can be used to pay medical expenses, including outpatient, hospitalization, medicines and other expenses, reducing the economic burden of individuals and families.

Third, personal financial planning.

Social security balance can also be used as part of personal financial planning. By understanding social security policies and accounts, individuals can reasonably arrange the amount and duration of payment and maximize the accumulation of social security balance. In addition, social security balance can also be used as a long-term saving method to help individuals realize the preservation and appreciation of assets.

Fourth, social fairness and stability.

A balanced social security system is also conducive to achieving social equity and stability. Through the payment and distribution mechanism of social insurance, the gap between the rich and the poor can be narrowed and social contradictions can be alleviated. At the same time, the accumulation and use of social security balance is also helpful to maintain social stability and reduce social risks caused by pension and medical problems.

To sum up:

Social security balance plays an important role in personal pension, medical security, financial planning and social fairness and stability. Individuals should fully understand the social security policy, rationally plan the payment and use the social security balance, and give full play to its value and role.

Legal basis:

People's Republic of China (PRC) social insurance law

Article 15 stipulates:

The basic pension consists of overall pension and individual account pension. The basic pension is determined according to factors such as individual cumulative payment years, payment wages, average salary of local employees, personal account amount, average life expectancy of urban population, etc.

People's Republic of China (PRC) social insurance law

Article 27 provides that:

Individuals who participate in the basic medical insurance for employees will not pay the basic medical insurance premium after retirement and enjoy the basic medical insurance benefits in accordance with the provisions of the state if they reach the statutory retirement age and the accumulated payment has reached the fixed number of years stipulated by the state; Those who have not reached the fixed number of years prescribed by the state may pay the fees to the fixed number of years prescribed by the state.