If we don't pay social security, can we deposit 3,000 yuan in the bank every mon
Due to the uncertainty of the expected retirement age in the future, some friends ask whether we can't save for retirement by depositing money in the bank each month if we don't need social security? For example, saving 3,000 yuan per month. To be honest, saving money for retirement carries significant risks, such as the following four aspects.
First, the risk of longevity.
Most people think that living a long life is a good thing, but if there is insufficient retirement savings, it becomes a pressure.
Saving 3,000 yuan per month amounts to 36,000 yuan per year, accumulating to 360,000 yuan over 10 years, and 540,000 yuan over 15 years.
Similarly, if we spend 3,000 yuan per month plus interest during our retirement, such funds would only cover expenses for 15 years. What happens after 15 years?
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As we age, personal pressure will only increase, leading to an involuntary reduction in spending, which in turn affects the quality of life.
Second, the risk of devaluation.
Although the prices have not increased significantly in the past two years, in the long run, prices are bound to grow steadily, especially considering that retirement is a process of saving money for decades and then spending it for decades. Who can guarantee that the prices in four or five decades will be the same as they are now?
Depositing money in the bank only yields a risk-free interest rate lower than that of government bonds. Currently, bank deposit interest rates are generally below 2%, which is far from enough to maintain or increase the value of assets.
In contrast, in 2024, the average pension for retirees increased by 3%. Moreover, we have experienced a period of rapid growth in the past. The main purpose of the national pension adjustment is to ensure that the pension benefits and living security are consistent, especially favoring groups such as the elderly. Therefore, the employee pension insurance pension is more suitable for retirement.Thirdly, the risk of the unexpected.
Saving 3000 yuan per month, we really idealize this process too much. There are still many people whose monthly salary is less than 3000 yuan now, how can we idealize a fixed saving of 3000 yuan. Especially with the continuous changes in the economic society, there are still risks such as unemployment for people.
In addition, there is also the risk of losing the ability to work. What if a person loses the ability to work due to illness or other reasons and no longer has the ability to save money? What should be done then? This is actually equivalent to early retirement, and insufficient accumulation will make life very difficult.
In fact, as long as you participate in our pension insurance for 15 years, in case of losing the ability to work, employees can apply for early retirement, resignation, or disability benefits, which can provide a certain living guarantee for this kind of employees. The relevant benefits can also be continuously improved, with the purpose of ensuring a basic life.
Fourth, the risk of custody.
The biggest risk of depositing money in a bank is the individual's advance withdrawal. There are many unexpected expenditures in a person's life, such as buying a car, buying a house, children's education, and serious illness. When encountering this situation, the money intended for old age is very likely to be diverted.
In addition, to say something unpleasant, after the elderly can no longer take care of themselves, the money deposited in the bank is no longer their own. Generally, few people over 80 years old have the ability to go to the bank to deposit and withdraw money independently. This part of the money has also become the disposable property of the children, and it will be less and less with each expenditure. Consider it from a human nature perspective. On the contrary, if it is a pension, it is naturally more cost-effective to live longer.
In addition to the above four risks, in fact, pension insurance is not only a guarantee for individuals, but also has a certain guarantee for the family. In case of the death of the insured, the employee's pension insurance fund will also issue the balance of the individual account of the pension insurance, funeral subsidy, and survivor's consolation money for the family, which can provide a certain economic buffer for the family.Overall, participating in a pension insurance plan is definitely more cost-effective than saving money for retirement. For instance, in Shandong Province this year, the monthly pension insurance premium is only 883.2 yuan, and if one has the ability to save 3,000 yuan per month, it would be better to allocate a portion of that money to pension insurance. #Top Headline Creation Challenge# #Should I Buy Social Security for Retirement or Save Money#
Due to the uncertainty of the expected retirement age in the future, some friends ask whether we can't save for retirement by depositing money in the bank each month if we don't need social security? For example, saving 3,000 yuan per month. To be honest, saving money for retirement carries significant risks, such as the following four aspects.
First, the risk of longevity.
Most people think that living a long life is a good thing, but if there is insufficient retirement savings, it becomes a pressure.
Saving 3,000 yuan per month amounts to 36,000 yuan per year, accumulating to 360,000 yuan over 10 years, and 540,000 yuan over 15 years.
Similarly, if we spend 3,000 yuan per month plus interest during our retirement, such funds would only cover expenses for 15 years. What happens after 15 years?
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As we age, personal pressure will only increase, leading to an involuntary reduction in spending, which in turn affects the quality of life.
Second, the risk of devaluation.
Although the prices have not increased significantly in the past two years, in the long run, prices are bound to grow steadily, especially considering that retirement is a process of saving money for decades and then spending it for decades. Who can guarantee that the prices in four or five decades will be the same as they are now?
Depositing money in the bank only yields a risk-free interest rate lower than that of government bonds. Currently, bank deposit interest rates are generally below 2%, which is far from enough to maintain or increase the value of assets.
In contrast, in 2024, the average pension for retirees increased by 3%. Moreover, we have experienced a period of rapid growth in the past. The main purpose of the national pension adjustment is to ensure that the pension benefits and living security are consistent, especially favoring groups such as the elderly. Therefore, the employee pension insurance pension is more suitable for retirement.Thirdly, the risk of the unexpected.
Saving 3000 yuan per month, we really idealize this process too much. There are still many people whose monthly salary is less than 3000 yuan now, how can we idealize a fixed saving of 3000 yuan. Especially with the continuous changes in the economic society, there are still risks such as unemployment for people.
In addition, there is also the risk of losing the ability to work. What if a person loses the ability to work due to illness or other reasons and no longer has the ability to save money? What should be done then? This is actually equivalent to early retirement, and insufficient accumulation will make life very difficult.
In fact, as long as you participate in our pension insurance for 15 years, in case of losing the ability to work, employees can apply for early retirement, resignation, or disability benefits, which can provide a certain living guarantee for this kind of employees. The relevant benefits can also be continuously improved, with the purpose of ensuring a basic life.
Fourth, the risk of custody.
The biggest risk of depositing money in a bank is the individual's advance withdrawal. There are many unexpected expenditures in a person's life, such as buying a car, buying a house, children's education, and serious illness. When encountering this situation, the money intended for old age is very likely to be diverted.
In addition, to say something unpleasant, after the elderly can no longer take care of themselves, the money deposited in the bank is no longer their own. Generally, few people over 80 years old have the ability to go to the bank to deposit and withdraw money independently. This part of the money has also become the disposable property of the children, and it will be less and less with each expenditure. Consider it from a human nature perspective. On the contrary, if it is a pension, it is naturally more cost-effective to live longer.
In addition to the above four risks, in fact, pension insurance is not only a guarantee for individuals, but also has a certain guarantee for the family. In case of the death of the insured, the employee's pension insurance fund will also issue the balance of the individual account of the pension insurance, funeral subsidy, and survivor's consolation money for the family, which can provide a certain economic buffer for the family.Overall, participating in a pension insurance plan is definitely more cost-effective than saving money for retirement. For instance, in Shandong Province this year, the monthly pension insurance premium is only 883.2 yuan, and if one has the ability to save 3,000 yuan per month, it would be better to allocate a portion of that money to pension insurance. #Top Headline Creation Challenge# #Should I Buy Social Security for Retirement or Save Money#