Which grade is the most cost-effective to pay social security yourself?

From the perspective of return time, the lower the payment grade, the more cost-effective. However, if you choose a lower payment grade, it also means that you will receive less pension every month after retirement.

From the choice of different payment grades and retirement yield, which payment grade has higher yield. According to official data, the average life expectancy in China is almost 78 years. If we retire at the age of 60, we still have 18 years, which means that it takes us almost 20 years to calculate the rate of return after retirement.

If the payment level is 60%, the rate of return for 1 year after retirement is only 18.2%, while the rate of return for1year after retirement has reached 258%. According to our previous calculation, he will be able to return to his capital in about five years, so the later the time, the higher the rate of return will definitely be. After all, it's pure profit.

Let's calculate again, the payment grade is 100%, and its rate of return is only 14.6% after one year of retirement. Obviously, the more it pays, the lower the rate of return at the beginning. By the time of 10 in the seventh year, he has already returned to his capital, and his rate of return has reached 10.

We often say that individuals pay social security contributions:

More refers to the flexible employment personnel to participate in the urban workers' pension insurance to pay the grade. Because for employees, the level of social security payment is related to the average monthly salary of the previous year, while for flexible employees, the level of endowment insurance can be flexibly selected.

According to the relevant regulations of the state, the payment level of flexible employees participating in employee pension insurance is between 60% and 300%, so you can choose flexibly and freely.

However, under normal circumstances, provinces and cities will formulate the basis for paying wages according to their own economic situation and local per capita income.

Different regions have different payment grades, such as 60%, 70%, 80%, 90%, 100%, 150%, 200%, 250% and 300%, which can be selected flexibly. Some provinces have more choices, and directly set the payment standard, which is between 60% and 300% of the payment salary, and any amount can be used.

This consideration is to facilitate flexible employees to participate in employee pension insurance and choose the appropriate payment grade of pension insurance according to their own situation.