Which is more cost-effective to pay social security or save money for the elderly?

It is cost-effective to pay social security or save money for the elderly, which needs to be decided according to personal circumstances.

Paying social security and saving money for the elderly have their own advantages and disadvantages. Paying social security can ensure that individuals get material help from the state and society in their old age, and social security provides multiple guarantees for citizens' social life. Saving money for the elderly is more flexible and can be decided according to your own economic situation and investment preferences. The payment period and amount of social security will affect the pension benefits after retirement. The longer the payment time, the higher the payment amount and payment base, and the higher the retirement benefits. However, due to China's large population base, social endowment insurance may not guarantee a high-quality life, and commercial endowment insurance can be used as a supplement.

Calculation method of social security pension:

1, personal account pension: according to the accumulated payment amount and interest rate of personal account, it is distributed to the expected collection period after retirement on an average monthly basis;

2. Basic pension: determined according to the standards set by the local social security bureau, usually related to the payment period and payment base;

3. Transitional pension: In some areas, in order to balance the pension level of different generations, transitional pension may be established;

4. Individual payment period: The longer the payment period, the more personal account accumulated and the higher the corresponding pension;

5. Payment base: Generally, personal wage income is the payment base. The higher the payment base, the more money accumulated in personal accounts and the higher the pension.

To sum up, individuals should weigh the advantages and disadvantages of social security and saving money for the elderly according to their own situation and make the most suitable choice for them.

Legal basis:

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

Article 15

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.