What's the difference between social security and overall planning?

There is no difference between social pooling and social insurance, and monthly pooling belongs to social insurance.

Social pooling refers to the large-scale unified collection, management and use of social insurance funds by social insurance agencies within the territorial scope. This system adopts the traditional basic endowment insurance fund raising model.

Social overall planning is shared by the state, units and individuals. The basic old-age insurance fund implements social mutual aid, and the basic pension is calculated by structural calculation method, emphasizing the incentive factors and labor contribution differences of individual account pension. The basic old-age insurance is enforced by the state, and its purpose is to protect the basic needs of retirees.

Extended data:

Forms of social overall planning:

1. Pay-as-you-go system: Pay-as-you-go system refers to a financial system in which the insurance premiums collected in the current period are used for current payment, so as to keep the insurance financial revenue and expenditure roughly balanced. In addition to pension insurance projects, general social security projects adopt this financial system.

The adoption of this system in endowment insurance has advantages and disadvantages. The biggest advantage of the pay-as-you-go system is that the rate calculation is simple, and at the same time, because there is no huge capital, there will be no pressure to maintain and increase value, and it will not be adversely affected by currency depreciation. But the shortcomings of this system are also obvious.

We must always reassess the financial structure and adjust interest rates. Generally speaking, due to the aging population structure and the rigidity of welfare level, the rate is generally increasing day by day. At the same time, from the perspective of distribution relationship, in the aspect of endowment insurance, the pay-as-you-go system is essentially a redistribution relationship between generations, and the increase in rates will deepen intergenerational contradictions and cause political problems.

2. Complete accumulation system: This system is a financial system that determines an average rate that can ensure a balance of payments in a long period of time after long-term calculation of relevant factors that affect the rate, and forms a social insurance fund with all the insurance premiums (taxes) collected. This financial system is widely used in the personal account plan of endowment insurance under the framework of enterprise annuity system and social insurance system.

The most obvious advantage of this system is that due to the accumulation of funds, the insurance premium rate can remain relatively stable in the case of an aging population. But this advantage is based on the premise that the fund's rate of return is higher than the wage growth rate. The defects of this system are also obvious, and higher rates are needed at the beginning of the system operation.

The fund is under great pressure from inflation. If the fund is used properly, not only the social insurance system will benefit from it, but also the whole economy will benefit from the effective allocation of the fund. On the other hand, if the fund can't maintain and increase its value, the cost of this system is higher than the pay-as-you-go system.

3. Partial accumulation system: This system is a mixture of pay-as-you-go system and complete accumulation system. At first, its rate was higher than the pay-as-you-go system and lower than the full accumulation system. In terms of reserves, it will be higher than the pay-as-you-go system and lower than the total accumulation system.

This system is to find a middle way to meet the aging population and the initial high premium system. The usual practice is to accumulate a small part of the premium paid by the original pay-as-you-go system in the personal account system, or increase the rate on the basis of the original system and accumulate all the incremental parts in the personal account system. This system also faces the problems of fund management and value preservation and appreciation.

Baidu encyclopedia-social insurance

Baidu Encyclopedia-Social Planning