Social security, pensions to "big change"? Experts propose a "new approach"! Hundreds of millions of people will be affected

Social security, pensions to "big change"? Experts put forward a "new approach"! Hundreds of millions of people will be affected

The importance and role of the social security system, which provides certain benefits in terms of health care, maternity, unemployment and pensions, is well known.

The state attaches great importance to social security contributions, especially health insurance and pension insurance, and pensions are adjusted annually.

China's pension system has been increased 16 times in a row until this year, and the basic pension for retirees has been increased by 5 percent since the beginning of this year.

According to relevant data, China's urban retirees will number about 123 million in 2019, with a total pension expenditure of 4.9228 trillion yuan, so on average, each person will receive a monthly pension of about 3,335 yuan, an increase of 5%, which is equivalent to receiving an extra 166.75 yuan this year.

However, that's just an average, and the exact amount depends on the number of years and the amount of social security contributions an individual pays; after all, the more you pay, the longer you get.

So naturally, different people get different amounts of Social Security, and this increase will vary to some degree.

Social Security and pensions will be adjusted starting later this year.

Many people worry that Medicare benefits will be reduced if individual accounts are eliminated.

In fact, there is no need to worry because Medicare benefits will not be reduced if individual accounts are eliminated.

Residents are entitled to a reimbursement rate of about 50 percent if they suffer from multiple or common illnesses.

Outpatient medical expenses for the treatment of chronic and special diseases, which are more expensive, are also paid for by the fund, which is managed and paid for under the inpatient system.

This means that the money spent annually on outpatient treatment of chronic and special diseases, plus the cost of hospitalization, can be reimbursed at a rate that is usually higher than the outpatient reimbursement.

So eliminating individual health insurance accounts would not reduce health insurance benefits.

For pension insurance, it should be noted that by the end of 2020, all transactions related to pension insurance will be operated with a Social Security card.

In Canton and other states, notices have been issued requiring retired employees to receive their pensions on their Social Security cards.

Therefore, retirees must activate the bank account and financial features of their Social Security cards in advance to ensure that they receive their pensions smoothly.

In fact, China has reformed its social security system over the years so that more people can enjoy more benefits.

However, changes to social security have been made very cautiously because they are not "drastic" - after all, hundreds of millions of people are at stake with each small adjustment.

But even though pensions have been increased 16 times in a row, the pressure on them is growing as China's population ages.

According to some figures, the number of people aged 65 and over in China could reach 380 million by 2025, accounting for 28 percent of the total population.

Some experts have therefore suggested a "radical reform" of the social security system.

Professor Yao Yang of Peking University pointed out that under the current social security system, some people's social security contributions are relatively high, while pension returns are very generous.

This is not desirable.

Therefore, he also put forward a related proposal to categorize social security contributions into three brackets, with the lowest bracket being lower and mandatory for all, which would effectively guarantee a certain level of pension benefits to maintain a basic living after retirement and better cover 15 years of social security.

In fact, if Social Security does change in this way, it could be very beneficial to those who cannot afford it.

The less affluent could choose to pay a lower Social Security contribution rate, with correspondingly lower pension benefits, but at least enjoy the benefits of receiving a pension.

Additionally, those who are better off can choose to receive higher pension returns, which can be very beneficial to both the better off and the less well off.

Professor Yao Yang of Peking University's "proposal" on social security has been recognized by many and, if implemented, would be a "boon", especially to those who cannot afford to pay social security contributions.

They would then be able to pay a minimum level of pension contributions and would no longer need to worry about not being able to retire at an old age and have a source of income.

Do you think these changes to Social Security are feasible?