New rules for Social Security?Pay fixed number of year or want upward adjustment, “these 2 kinds of people” want to worry

2022-05-01 0 By

China’s pension fund will face a shortfall of 8-10 trillion yuan in the future, and the “future” is not far away, that is, within 5-10 years, according to a report released by the China Insurance Association on January 20, 2022.It also shows that China’s pension fund may soon face a deficit.To address the impact of aging, China plans to launch a delayed retirement policy in 2022, which also has a process of implementation.There will be a gradual approach to delaying retirement, which is expected to be fully completed by 2027, meaning that our retirement will increase by five years in the future.In addition, China’s aging policy has received new news recently.The news may not be good news for many people, but the minimum age for social security contributions will change.As we all know, there are two conditions that citizens need to meet in order to receive retirement benefits.One is retirement age, and the other is 15 years of social security contributions.Not many people actually contribute to the endowment insurance, right?By the end of June 2021, the number of people participating in China’s pension insurance system had reached 1.014 billion, accounting for about 72 percent of the country’s total population, according to official data.But according to Zheng, not many people actually pay into the endowment insurance.Some enrollees have signed up but not paid.Data show that from 2010 to 2017, the number of people without insurance rose from 11.67 million to 53.39 million.During that period, nearly 550 billion yuan of paid income was lost as people were unwilling to pay more for social security.Around 2010, the number of people who signed up but didn’t pay was only about 10% of enrollees. By 2020, it had reached 20%.This equates to two out of every 10 insured people not paying.This is not conducive to the healthy development of China’s social security system, and will even accelerate the loss of social security funds.Therefore, both for the country and for us as individuals, this problem needs to be solved.One solution, besides creating more incentives to contribute, is to extend the minimum social security contribution period by 15 years.As for the minimum period of social security contributions, at that time, because people were not employed for a long time, the prescribed period of social security contributions was 15 years.But later, with the development of society, people began to work longer, so the minimum social security contribution period is no longer in line with the current environment.The period for social security contributions may need to be adjusted to cope with an aging population, according to a circular issued by the authorities.If the number of years of social security contributions increases, it means that the 15 years of social security contributions is not enough, and you need to continue to pay according to the increased number of years until the requirements are met.However, raising the minimum age for social security contributions will have little impact on employees of state-owned enterprises and public institutions, as they have more than 30 years to contribute from graduation to retirement.Therefore, for these groups, raising the minimum period of social security contributions has little impact.For these two groups, however, the impact of raising the minimum period for social security contributions is most pronounced.Freelancers have more flexible work schedules than other workers, but they face more stress due to their unstable income streams.In other words, if the source of funding is broken, it will be harder for freelancers.Since freelancers don’t receive social security contributions from companies, they should be responsible for all costs themselves.That has led many freelancers to be reluctant to contribute to Social Security, so whether they will be able to contribute for 15 years remains in question.If it is extended for another five years, the pressure will be even greater.First of all, there is a lot of turnover among private employees.Their working conditions are unstable and they even change jobs frequently.However, social security is paid monthly.If you leave, the company won’t be able to pay.In recent years, the real economy has suffered setbacks, and the interests of private enterprises are difficult to maintain stability.If you leave, employees can’t stick to social security contributions, they can only pay when they move to the next company.Expenses during this period shall only be borne by employees themselves.Yet we all know that we pay far more for ourselves than we do for our time in the workforce.If not, social security contributions will have to be extended, a headache for many workers.Living in today’s society is not easy, life pressure is very high, simple social security may bring a huge economic burden to some people.So extending social Security is a real headache for private-sector workers.In the face of the Ministry of Human Resources and Social Security’s proposal to raise the minimum age of social security contributions, we do not think we need to worry too much: on the one hand, even if the Ministry of Human Resources and Social Security wants to raise the minimum age of social security contributions, it will be gradual, and it is impossible to significantly increase the minimum age of social security contributions all at once.On the other hand, the current plan to raise the minimum age of social security contributions is still in the pipeline, and there is no final plan yet.It is estimated that it is likely that the old and new ages will be cut off, with the new and the new and the old.Therefore, raising the minimum age of social security contributions will not have a big impact on some older workers who are about to retire.