Is it worthwhile for individuals to pay all endowment insurance?

According to the provisions of Article 12 of the Social Insurance Law, flexible employees who participate in the basic old-age insurance shall pay the basic old-age insurance premium in accordance with state regulations and record it in the basic old-age insurance pooling fund and individual account respectively.

So you pay 20% of the base, of which 12% (accounting for 60% of the payment) is transferred to the basic old-age insurance pooling fund to pay the basic pension for the retirees now, and 8% (accounting for 40% of the payment) is transferred to the personal account to pay the personal account pension after retirement. The endowment insurance premium is paid by me at 20% of the base. Of which 12% goes to the social pooling fund and 8% goes to the personal account.

If you put it all into your personal account, it can't be called social endowment insurance, but your own savings to prevent old age. Social endowment insurance has the characteristics of "social mutual assistance", that is, most of the money you pay now is used to give basic pensions to people who retire now. After you retire, the money paid by the staff later is used to give you pensions.

If you fail to pay the fee 15 years after reaching retirement age, the policy allows you to extend the payment. If the extension is less than 15 years, the policy allows one-time payment.

Therefore, it is suggested that you should defer payment for 15 years. Otherwise, when you reach retirement age, you can only return 40% of the full payment, which is very uneconomical.

Attachment: Detailed Rules of Social Insurance Law Article 2 When an individual who participates in the basic old-age insurance for employees reaches the statutory retirement age, if the accumulated payment is less than fifteen years, the payment may be extended to fifteen years. After the implementation of the Social Insurance Law, if the payment is extended for five years but still less than fifteen years, it can be paid in one lump sum for fifteen years.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.