What is the difference between early payment and late payment of social security?

The difference between early payment and late payment of social security mainly lies in the positive correlation between the payment period and pension benefits.

The longer the payment period, the more the payment and the higher the pension benefits, which is the general law of the social endowment insurance system. China's social pension benefits include basic pension and personal account pension. After the insured pays 15 years, the basic pension benefits will increase 1 percentage point for each full year.

All personal contributions are included in his personal account. Whoever has a large amount of deposits in his personal account can get a high pension every month. Even if all the savings are taken out, as long as the insured person is still alive, the state promises to continue to pay according to this standard until his death. Therefore, the general payment 15 years is not the most cost-effective.

The payment period determines the initial pension level in the first month after retirement and serves as the base for future adjustment. According to the regulations, with the increase of wages and prices, the pension will be adjusted according to the initial pension. The higher the initial pension, the greater the adjustment.

Extended data:

For individuals to pay social security, because the payment base of social security is increasing every year, it is almost the same to pay early and pay late. If you pay late, you will pay more money every month; If you pay it back early, you will pay less money every month, but the interest will be more over the years. In this way, no matter whether you pay early or late, the money in your personal account will be similar when you retire, and the amount of pension will not be too bad.

Among them, the pension insurance is paid 15 years, and you can apply for retirement when you are old, but if you only pay 15 years, the pension is low; Therefore, men are 45 years old, women are 40 years old, and they will retire in 15 years. You can apply for retirement after paying endowment insurance 15 years, and you can make up medical insurance when you retire.

Phoenix. Com- People's Daily: It's actually very cost-effective to participate in social security for the aged. The longer the payment time, the better.