The number of years of social insurance contributions has a great impact on the level of pension after retirement. According to the provisions of the Social Insurance Law of the People's Republic of China, the standard pension calculation method of urban employees' pension insurance is: standard pension = payment period, personal account accumulation, average life expectancy. It can be seen that the longer the contribution period, the higher the accumulation of personal accounts, and the higher the level of monthly pension received after retirement.
Taking Beijing as an example, if an employee retires after 15 years, according to the basic pension standard for urban workers in Beijing in 2020, the monthly pension he can receive is about 1,500 yuanIf you pay for 25 years, you can receive a pension of about 2,500 yuan per month;If you pay for 30 years, you can receive a pension of about 3,000 yuan per month;If you pay for 40 years, you can receive a pension of about 4,000 yuan per month. It can be seen that the longer the contribution period, the higher the monthly pension after retirement, and the gap is very large.
This is mainly because: first, the longer the payment period, the higher the total amount of social security contributions in the personal account. Second, employees who have paid for a long time will earn more interest through investment in their personal accounts. Third, the average life expectancy of long-term contributors is likely to be longer, and the number of years for which pensions are distributed will be longer. The superposition of these factors has led to a large gap in the level of pensions received by employees with different payment years after retirement.
Therefore, employees should improve their awareness of social security and pay social security fees for a long time, which can not only bring higher pension income after retirement, but also help alleviate pension pressure and realize the sustainable operation of the social security system. Only with the participation of the whole people can the social security system truly play its due role.