Which is more cost-effective than social security or endowment insurance?

The cost performance of social security and endowment insurance needs to be judged according to individual circumstances.

Social security includes not only endowment insurance, but also basic medical insurance, work injury insurance, unemployment insurance and maternity insurance; Endowment insurance provides special protection for the elderly. It is cost-effective for individuals to pay endowment insurance because it ensures that they can get material help from the state and society when they get old. It is more cost-effective to pay community endowment insurance according to the minimum payment standard, because the investment payback period is short. The endowment insurance premiums paid by units and individuals are 19% and 8% respectively, while industrial injury insurance and maternity insurance are only paid by enterprises. Considering 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. Therefore, whether it is cost-effective depends on personal economic situation and expectations for future quality of life.

Calculation method of social security:

1, payment base: usually based on the average salary of the individual's place, combined with the actual income of the individual;

2. Payment ratio: According to local policies, individuals and units bear a certain proportion of social security expenses;

3. Payment period: it affects the level of pension collection, and generally requires a minimum payment period to enjoy pension benefits;

4. Personal account: the part of personal payment goes into personal account, which is directly related to pension collection;

5. Social pooling: the part paid by the unit goes into the social pooling fund, which is used to pay the pensions of the current retirees.

To sum up, the cost performance of social security and endowment insurance needs to be judged according to personal circumstances. It is cost-effective for individuals to pay endowment insurance, and it is more cost-effective for community endowment insurance to pay according to the minimum payment standard. Commercial endowment insurance can be used as a supplement. Therefore, whether it is cost-effective depends on personal economic situation and expectations for future quality of life.

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.