Social security, that is, social insurance, is a social security system established by the state in order to protect the right of citizens to receive material assistance from the state and society in accordance with the law in the event of old age, illness, work-related injury, unemployment, childbirth, etc. Pension is an important part of the social security system, which aims to provide life security for the insured after retirement. To put it simply, social security is the foundation, and pension is an important guarantee on this basis.
Strictly speaking, pensions fall under the category of social insurance. It is a kind of living security that workers get from pension insurance on a monthly basis after reaching the statutory retirement age and quitting the labor field, according to their pension insurance contributions during their employment. That is to say, the issuance of pensions is based on a combination of individual contributions and subsidies, which are mandatory and mutually beneficial.
Although retirement pensions and social security are both designed to ensure the livelihood of the elderly, there is a clear difference between them.
Different scope: Social security is a broader security system, covering pension, medical care, unemployment, work-related injury, maternity and other aspects. The retirement pension is focused on the aspect of pension.
The purpose is different: the purpose of social security is to ensure the basic living needs of citizens, while the purpose of retirement pension is to meet the basic living needs of retirees.
As a social security system at the national level, social security has the following characteristics:
Mandatory: Social security is required by law, and employers must pay social security contributions for employees.
Mutual aid: Social security is composed of individual and enterprise contributions, subsidies, etc., and has the characteristics of mutual aid.
Fairness: The social security system emphasizes the principle of fairness to ensure that citizens can receive corresponding material help when they encounter life risks.
Guarantee: Social security aims to provide basic living security for the insured and ensure that their basic living needs are met.
In addition to social security, there are a variety of ways to provide a pension for retirees. Here are some common methods:
Personal savings: Individuals can accumulate wealth through savings and other ways to provide financial support for their retirement life.
Commercial endowment insurance: Endowment insurance products provided by commercial insurance companies can provide additional pension income for retirees.
Investment and financial management: Through investment**, real estate, etc., you can accumulate wealth for your retirement life.
Other welfare plans: Some enterprises or social organizations may provide additional welfare plans, such as enterprise annuities, housing provident funds, etc., which can provide certain financial support for retirees.
Social security and pension are closely related social security systems. Understanding how they relate to each other and how to plan for your own wealth in retirement is important for everyone. By using a combination of methods, we can provide more stable and reliable financial security for our retirement.