The basic condition for us to receive a pension upon retirement is to have paid social security contributions for 15 years, and then we can wait until the retirement age.

Many individuals participating in the flexible employment pension insurance often stop paying after 15 years to save money, waiting to retire and receive their pensions.

This method of payment results in the lowest pension amount but offers the highest cost-performance ratio.

Why is it considered the lowest pension?

The pension calculation formula mainly consists of two parts: the basic pension and the personal account pension. The transitional pension is for the payment years before the establishment of personal accounts, and it is no longer generated with current payments.

① The basic pension part is mainly related to three factors: the average social wage, the individual's average payment index, and the payment duration.

If you pay at the lowest base for 15 years, the average payment index will generally be below 0.6, but it won't be too far off.

At an average payment index of 0.6, paying for 15 years entitles you to receive 12% of the average social wage of the year prior to retirement.

Payment duration is an important factor, which is calculated down to the month. For example, a payment duration of 15 years and 01 month will be converted to 15.0833 years. According to the pension calculation formula, this will result in an additional 0.067% of the average social wage.If the average social wage reaches 10,000 yuan, paying an additional month of social security contributions can increase the pension by 6.7 yuan. Of course, if the payment level is higher, the pension will also be higher. However, most flexible employment personnel pay according to the minimum base.

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②Personal account pension is mainly related to the balance of the personal account in the pension insurance and the retirement age.

Each month's pension insurance is credited to the personal account at 8% of the payment base. Therefore, the balance of the personal account also accumulates month by month, and paying for an additional month will result in more money.

For example, if the payment base is 6,000 yuan, the personal account balance can increase by 480 yuan each month. If retirement is calculated at the age of 60, the personal account pension can increase by about 3.4 yuan per month.

Generally speaking, with the current national average social wage level between 7,000 and 8,000 yuan, paying for 15 years, the pension is 1,200 to 1,500 yuan, which is indeed the lowest level compared to other payment levels and payment years.

Why is it also the most cost-effective?

Firstly, the cost of payment is the most cost-effective, which is certainly understandable to everyone. After all, paying according to the minimum base for 15 years is the most economical way to pay.

Secondly, the increase in pension is cost-effective. The annual increase in pensions is carried out through three methods: fixed amount adjustment, linkage adjustment, and appropriate inclination. The fixed amount adjustment is where people increase by the same amount of money, and the lower the pension level, the higher the proportion of the increase.

According to the pension adjustment plan in Shandong Province this year, the fixed amount adjustment standard is 32.6 yuan. If the pension is 1,000 yuan, the increase ratio is 3.26%. If the pension is 6,520 yuan, the increase ratio is only 0.5%. If it is an adjustment for the elderly, it is also the same pension increase for people of the same age.This method of adjustment is very conducive to ensuring the pension level of low-income groups, and over time, it helps to narrow the gap in pension levels among people.

Thirdly, the welfare benefits are cost-effective. Taking Shandong Province as an example again, every winter, retired enterprise employees receive a winter heating subsidy of 1,700 yuan. This part of the treatment is the same, whether the pension is 10,000 yuan or 1,000 yuan.

Moreover, after the policyholder passes away, the standard of funeral assistance and consolation money received by family members is also basically the same, regardless of the pension level. For instance, in Shandong Province, if a retired elderly person has received a pension for more than 15 years, the funeral assistance and consolation money treatment is equivalent to 11 months of the average monthly disposable income of urban residents. Regardless of whether the pension is 1,000 yuan or 10,000 yuan, it is the same.

Therefore, our social security pension is fundamental, and the pension insurance ensures the basics. Indeed, paying the minimum base for 15 years entitles one to the basic national guarantee, making it the most cost-effective. However, our country will also gradually increase the minimum payment period for receiving pensions in the future to promote fairness in contributions and benefits as much as possible, while also reducing the pressure on the pension insurance fund. #Headline Creation Challenge# #Social Security Payment for 15 Years#