Is China's old-age insurance losing money?

In fact, the income of the endowment insurance fund is not only the social insurance premiums paid by employees, of which about 1/4 comes from government subsidies. The Social Insurance Law stipulates that when the endowment insurance fund is insufficient to pay, it will be subsidized by the government. In 2022, the central government alone will subsidize the old-age insurance fund by 650 billion yuan. Since the establishment of the endowment insurance fund, the accumulated financial subsidies at all levels have exceeded 5 trillion yuan.

In the future, with the intensification of aging, the wages and prices of employees are rising, and the expenditure scale of pension funds will continue to increase.

Therefore, the endowment insurance fund is actually a loss-making "business" with great pressure. However, the state will try to raise funds to ensure the timely and full payment of endowment insurance funds. For example, the equity of the national social security fund has reached 2.5 trillion, and the equity of state-owned enterprises 10% has been allocated to the social security fund. Don't worry.