What's the difference between personal pension and social security?

Personal pension is different from social security. Personal pension and social security have the following differences:

1, different sources of funds.

At present, the social pension we pay is paid by individuals and units, but the proportion of sharing is different. Personal pension is completely saved by us and voluntary. You can save as much as you want, but it can't exceed the upper limit of 12000 yuan per year.

2. The funds go to different places.

Part of the social security fund will go into the overall account, which is what we call "pay as you go". After the pension we pay now enters the overall account, we can't receive the pension before retirement. Retirees who are now receiving pensions have already received the money in these overall accounts.

However, the money in the personal pension account, no matter how much we save, is our own. We can't get it out before we reach retirement age, and others can't use the money in your account. It's entirely our own. Even if we are gone, we can be inherited by our families. Therefore, whether changing jobs or going to other cities, there is no trouble to move because it does not involve co-ordination of accounts.

3. Different compulsive behaviors

Social security is compulsory, everyone needs to pay, and each unit and individual pays a part, while individual pension is voluntary, and the payment is borne by all individuals, with the upper limit of 12000 yuan per year.

Personal pension has many benefits, which can be used for investment and has tax incentives. Moreover, personal pension is managed by closed accounts, and it is generally not allowed to withdraw in advance, which is convenient for fund management.

If you want to participate in personal pension, you must first establish a "personal pension account" on the personal pension information management service platform. In addition, a "personal pension fund account" should be opened, which can be used for personal pension payment, income collection and personal income tax payment. Personal pension fund accounts can be designated or opened by our bank in qualified commercial banks, or designated by other qualified financial product sales institutions.