If you stop paying social security and wait for retirement after 15 years of pay
Recently, I encountered a netizen asking: "I've paid social security for 15 years. Can I stop paying and just wait for retirement?"
To be honest, in recent years, due to the continuous increase in the average social wage, the upper and lower limits of the payment base have also been rising. For instance, last year in Shandong Province, the minimum base for pension insurance payments reached 10,180.8 yuan. Under the burden of such high costs, some people indeed believe that after paying social security for 15 years, they have fulfilled their obligation. However, if you stop paying, there are three major risks:
First, the risk of policy changes.
Currently, the regulations for receiving a pension upon retirement are mainly based on the provisions of the "Social Insurance Law," which states that individuals who have participated in the basic pension insurance and have paid for 15 years can receive a pension upon reaching the legal retirement age. However, laws can be amended.
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In the 14th Five-Year Plan for the development of human resources and social security, it is clearly proposed to promote a gradual delay in retirement, and immediately following that, it is suggested to increase the minimum number of years required for pension payment.
Although there are currently no policies in place, it is highly likely that they will be announced alongside the delayed retirement policy, but there should not be too many changes. This is because doing so can effectively alleviate the pressure of delayed retirement and is part of the national comprehensive plan.
If the minimum payment period of 15 years were to become 30 years, it might also change with the variation in the payment ratio. After all, the current 20% payment ratio for flexible employment personnel is quite high. Reducing the payment ratio would help alleviate the social insurance pressure and increase the enthusiasm for payment.
Second, the risk of insufficient pension.
How much pension will be needed to achieve a comfortable retirement after retirement? Most people aim for more than 3,000 to 5,000 yuan.
(Note: The translation ends abruptly as the original text was cut off.)According to internationally accepted standards, a pension income level of 70% to 80% of the pre-retirement income level after retirement is sufficient to maintain one's lifestyle without significant impact.
Our current pension calculation formula primarily consists of two parts: the basic pension and the individual account pension. The pension insurance system operates on the principle of "more contributions, more benefits" and "longer contributions, more benefits."
Based on the pension calculation formula, the level of pension is actually very closely related to the length of contribution. For instance, the basic pension is directly based on the number of years of contribution to receive a certain percentage of the average social wage.
If one contributes at the minimum level of 60% for 15 years, the basic pension typically amounts to 12% of the average social wage, plus a portion of the individual account pension. At the current level, the pension would be just over 1000 yuan, which is not a comfortable living standard.
Money in hand now carries the risk of being spent and also faces the pressure of devaluation. Therefore, it is better to contribute to the pension insurance for a longer period.
Thirdly, there is the risk of insufficient medical insurance duration.
According to the regulations of the basic medical insurance for employees, when reaching the legal retirement age, if the contribution period meets the local stipulated duration, one can enjoy the retired medical insurance benefits without further payments.
The reimbursement ratio of the employee basic medical insurance is high, and there is an outpatient cost-sharing mechanism within the employee medical insurance, with an even higher reimbursement ratio for retired employees (including those hospitalized). Therefore, if one has the financial capacity, it is advisable to prioritize employee medical insurance.
The contribution period for medical insurance is executed according to local regulations. For example, Qingdao City currently implements a 20-year contribution period for women and a 25-year period for men, which will be changed to 25 years for women and 30 years for men in the future. Under these circumstances, contributing for only 15 years will not qualify one for retired medical insurance benefits.In general, since social security contributions are related to the accumulation of payment years for retirement, it is possible to stop paying when there is insufficient financial capacity, but it is not recommended to stop paying indefinitely. #Top Headline Creation Challenge# #15 Years of Social Security Contributions#
Recently, I encountered a netizen asking: "I've paid social security for 15 years. Can I stop paying and just wait for retirement?"
To be honest, in recent years, due to the continuous increase in the average social wage, the upper and lower limits of the payment base have also been rising. For instance, last year in Shandong Province, the minimum base for pension insurance payments reached 10,180.8 yuan. Under the burden of such high costs, some people indeed believe that after paying social security for 15 years, they have fulfilled their obligation. However, if you stop paying, there are three major risks:
First, the risk of policy changes.
Currently, the regulations for receiving a pension upon retirement are mainly based on the provisions of the "Social Insurance Law," which states that individuals who have participated in the basic pension insurance and have paid for 15 years can receive a pension upon reaching the legal retirement age. However, laws can be amended.
Advertisement
In the 14th Five-Year Plan for the development of human resources and social security, it is clearly proposed to promote a gradual delay in retirement, and immediately following that, it is suggested to increase the minimum number of years required for pension payment.
Although there are currently no policies in place, it is highly likely that they will be announced alongside the delayed retirement policy, but there should not be too many changes. This is because doing so can effectively alleviate the pressure of delayed retirement and is part of the national comprehensive plan.
If the minimum payment period of 15 years were to become 30 years, it might also change with the variation in the payment ratio. After all, the current 20% payment ratio for flexible employment personnel is quite high. Reducing the payment ratio would help alleviate the social insurance pressure and increase the enthusiasm for payment.
Second, the risk of insufficient pension.
How much pension will be needed to achieve a comfortable retirement after retirement? Most people aim for more than 3,000 to 5,000 yuan.
(Note: The translation ends abruptly as the original text was cut off.)According to internationally accepted standards, a pension income level of 70% to 80% of the pre-retirement income level after retirement is sufficient to maintain one's lifestyle without significant impact.
Our current pension calculation formula primarily consists of two parts: the basic pension and the individual account pension. The pension insurance system operates on the principle of "more contributions, more benefits" and "longer contributions, more benefits."
Based on the pension calculation formula, the level of pension is actually very closely related to the length of contribution. For instance, the basic pension is directly based on the number of years of contribution to receive a certain percentage of the average social wage.
If one contributes at the minimum level of 60% for 15 years, the basic pension typically amounts to 12% of the average social wage, plus a portion of the individual account pension. At the current level, the pension would be just over 1000 yuan, which is not a comfortable living standard.
Money in hand now carries the risk of being spent and also faces the pressure of devaluation. Therefore, it is better to contribute to the pension insurance for a longer period.
Thirdly, there is the risk of insufficient medical insurance duration.
According to the regulations of the basic medical insurance for employees, when reaching the legal retirement age, if the contribution period meets the local stipulated duration, one can enjoy the retired medical insurance benefits without further payments.
The reimbursement ratio of the employee basic medical insurance is high, and there is an outpatient cost-sharing mechanism within the employee medical insurance, with an even higher reimbursement ratio for retired employees (including those hospitalized). Therefore, if one has the financial capacity, it is advisable to prioritize employee medical insurance.
The contribution period for medical insurance is executed according to local regulations. For example, Qingdao City currently implements a 20-year contribution period for women and a 25-year period for men, which will be changed to 25 years for women and 30 years for men in the future. Under these circumstances, contributing for only 15 years will not qualify one for retired medical insurance benefits.In general, since social security contributions are related to the accumulation of payment years for retirement, it is possible to stop paying when there is insufficient financial capacity, but it is not recommended to stop paying indefinitely. #Top Headline Creation Challenge# #15 Years of Social Security Contributions#