Should I wait for my pension or receive social insurance at once?

(Baonghean) - Currently, with the new social insurance policy information, many people are confused, whispering to each other that "withdrawing social insurance book to receive money at once is "more profitable" than waiting decades later to receive pension". However, workers need to be extremely vigilant and cautious with false information, and must consider carefully before deciding to receive social insurance at once.

Illustration: Internet

First of all, it is necessary to understand that when receiving social insurance at one time, workers will lose the opportunity to receive a pension, have no guarantee for their life in old age and will become a burden for their family and society.

The amount of money paid into the Social Insurance Fund is one's own valuable "savings", it is not lost but on the contrary, it is still managed and invested for growth by the Social Insurance agency. Employees can completely reserve the time to pay Social Insurance so that when conditions permit, they can continue to participate in compulsory Social Insurance or participate in voluntary Social Insurance with partial financial support from the State (at the level of 10, 25, 30% of the contribution level calculated on the poverty line in rural areas depending on the subject).

During the retention period, if the employee dies, the family will also receive a funeral allowance equal to 10 months of basic salary. Relatives, depending on the conditions, will receive a monthly death allowance (up to 4 people) until they reach adulthood (if they are children) or until they die (if they are wives, husbands or parents who have passed the working age and have no income or have income but lower than the basic salary); in case of receiving a one-time death allowance, the allowance level is calculated as a one-time social insurance allowance.

Meanwhile, receiving social insurance at one time means accepting a huge disadvantage:

- With the rate of 22% of monthly salary contributed to the pension and death fund, the total annual contribution is 2.64 months of salary; while the one-time social insurance benefit for each year of social insurance contribution is only equal to 2 months of salary. Thus, the employee loses 0.64 months of salary and the fund benefits. The disincentive to receive one-time social insurance is also for the purpose of ensuring sustainable social security for the people.

- If compared with the time spent accumulating pension benefits, the disadvantages are incalculable. Pensioners, in addition to their pension benefits, also have the fund pay the entire cost of purchasing health insurance cards (equal to 4.5% of their pension benefits).

In addition, periodically, based on the consumer price index (inflation), the State adjusts the pension increase accordingly (from 2003 to present, the State has adjusted the pension increase 15 times, with the increase ranging from about 7.5 to 9.3 times depending on the target group).

Upon death, the family will also receive a funeral allowance equal to 10 months of basic salary. Relatives will receive a monthly death benefit if eligible or a one-time death benefit with a minimum level equal to 3 months of pension.

Paying social insurance to receive pension also goes hand in hand with health care benefits when you retire. Illustrative photo

Regarding voluntary social insurance contribution: 2008-2009: 800,000 VND (equal to 16%); 2010-2011: 900,000 VND (equal to 18%); 2012-2013: 1,000,000 VND (equal to 20%); 2014 onwards: 1,100,000 VND (equal to 22%). If receiving social insurance in one lump sum, the benefit level is as follows:

- Each year of social insurance payment before 2014 is calculated as 1.5 months of average salary.

From January 2008 to December 2012: 6 years x 1.5 months = 9 months.

- Each year of social insurance payment from 2014 onwards is calculated as 2 months of average salary.

From January 2014 to December 2027: 14 years x 2 months = 28 months.

- Total number of months received is: 9 months + 28 months = 37 months.

Total amount of one-time social insurance payment:

7,137,500 VND x 37 months = 264,087,500 VND.

* Total pension benefits (including health insurance card purchase money, funeral allowance, one-time death allowance at the lowest level of 3 months pension):

- For female workers, it is 2,161,050,000 VND, 1,896,962,000 VND more than receiving one-time social insurance (7.18 times more).

- For male workers, it is 1,786,019,000 VND, 1,521,931,000 VND more than receiving one-time social insurance (5.76 times more).

Thus, compared to receiving a pension, receiving social insurance in one lump sum is very disadvantageous for oneself. Employees need to carefully consider their own situation to make the right choice./.

PV