What does it mean for individuals to pay social security as a whole?

The state has allocated part of the money to support retired people and reimburse them for medical insurance.

explain

(1) About 1/3 of the total insured amount goes into personal account, and about 2/3 goes into labor insurance fund, which is to co-ordinate and support retirees. This is the most popular explanation.

(2) Social security co-ordination account, the word "co-ordination" originated from the name of the Social Security Fund Co-ordination Office established after the 1970s in China. At first, it refers to the co-ordination management of labor insurance system funds, and then it was used to help various social insurance projects.

(3) The international equivalent English term is "pooling", which is the concept of fund risk pool. Therefore, the overall level of social insurance can be understood not only from the administrative level, but also from the adjustment range of the coverage population.

(4) Whether the company pays or the individual pays, a part of the social security fee will be included in the overall account, and the rest will be included in the personal account. If an individual dies or surrenders, he can only inherit or refund the amount in his personal account.

(5) All social security fees paid by all the people in the overall planning area will be put into one account. For example, in Shenzhen, the part paid by the company for employees goes into the overall account, and the part paid by employees themselves goes into the personal account. When employees retire, some pensions are paid from personal accounts, and some are paid from overall accounts.

(6) After individuals and units pay social security, some social security will be included in the overall account. For example, medical treatment, personal hospitalization, and expenses are reimbursed by the overall account. Overall account is to collect the money paid by everyone and then concentrate on secondary distribution.