Endowment insurance will be the most important guarantee for people in the future. With the continuous improvement of people's living standards and the continuous development of medical technology, people's life expectancy is also getting higher and higher. In 2019, China's average life expectancy reached 77.3 years. The average life expectancy in 2020 in many areas even exceeded 80 years, of which the average life expectancy of Shanghai residents reached 83.67 years (81.24 years for men and 86.20 years for women).
Paying pension insurance actually deals with the risk of longevity in old age. In case of a particularly long life, how will the pension be lived? Because many people know that our pension insurance retirement condition is to reach the statutory retirement age, the pension insurance has accumulated contributions for 15 years. The question of when to pay in these 15 years has become a question that everyone has been arguing about endlessly.
If you pay when you are young, but when you are young, your income is low and your burden is heavy, and there is a risk of death after payment, and you may not enjoy pension treatment.
However, to be honest, it is a statutory obligation for employees to participate in pension insurance, and it is not a personal will that can shirk responsibility.
In addition, there are four benefits to paying pension insurance when you are young, please keep in mind:
First, the sooner you pay, the more you save money. People who have experienced decades of rapid development know how fast the average wage level in our society is rising. In the early 1990s, the average social wage in China was generally two or three hundred yuan, and by 2020, the average social wage of urban non-private units had reached 8114.9 yuan.
At present, the minimum payment base is generally more than 3,500 or 600 yuan, and if it is a flexible employment person who pays monthly fees, it also needs to pay more than 700 yuan per month. But even so, our average social wages are maintaining a rate of 8% to 10% every year, which is a growth rate that cannot be achieved without risk-free investment. Therefore, the earlier the payment is still the more money-saving.
Second, provide more options. According to the 2016 "Notice on Further Strengthening the Management of revenue and expenditure of the Basic Pension Insurance Fund for Enterprise Employees", it is clear that individual industrial and commercial households and flexible employment personnel must not increase the payment period by hunting down and paying at the time. Enterprises can only make up the payment if they do not pay social insurance in full and on time, but they also need to pay late fees.
If we start to pay pension insurance when we are young, we can have more choices for old age. Especially in the case of unemployment or layoff (the older you are, the higher the risk of being unemployed and laid off), you can choose to stop paying social insurance and be able to give priority to ensuring basic livelihood with money.
What's more, pension insurance is more than pay, long pay more, only according to the minimum base to pay for 15 years, the monthly pension is more than 1,000 yuan, can only guarantee a very low living standard. If you want a pension of two or three thousand yuan, you still need to pay more and pay a long time. Moreover, the annual pension adjustment after retirement will also have incentives for high base contributions and long contribution years.
In terms of cost performance, it is better to pay pension insurance for a long time when you are young than to pay according to a high base when you are old.
Third, an additional guarantee is provided. People always keep the retirement age at women, 50 or 55 years old, and men retiring at 60 years old. In fact, if we lose the ability to work, the statutory retirement age is 50 years for male employees and 45 years for female employees. In particular, during the 14th Five-Year Plan period, our country will improve the sick and disability allowance system, which is a treatment that can be received (regardless of age) when you lose the ability to work.
If you start to pay pension insurance at a young age, you can effectively prevent the situation that you lose your ability to work due to accidents and your life is not guaranteed.
Fourth, effectively prevent policy changes. The 15 years of pension insurance payment is a policy determined from the beginning of the implementation of the pension insurance system in China, and this payment period can be increased.
In fact, delayed retirement is a systematic package of policies, including the policy of delaying retirement, and the state will also increase the minimum number of years of contribution to pensions. According to the 14th Five-Year Plan for the development of human resources and social security, the minimum payment period during the 14th Five-Year Plan period will also be changed.
Many men may want to wait for the age of 45 to start participating in the insurance payment, but the future pension period is really not necessarily 15 years.
Knowing the above four benefits, would you still choose to pay for example when you retire for 15 years?