Retirement insurance is always the top concern of employees because when they are old, everyone wants to be comfortable and can enjoy life without worry thanks to the accumulation when they are young. Let's compare supplemental pension insurance and self-employment pension insurance to find the right solution for yourself when you get old!
The concept of supplementary pension insurance and voluntary pension insurance
Supplemental retirement insurance is one of the completely voluntary social insurance policies to supplement the compulsory retirement system of social insurance to help employees save and create their own retirement fund through social insurance. through investment activities as prescribed by law.
Meanwhile, voluntary pension insurance is a life insurance product designed by an insurance company to provide additional income at the end of the prescribed working age for participants.
Thus, supplemental pension insurance is a policy product of the State, while voluntary pension insurance is a product provided by insurance companies.
You can compare supplemental pension insurance and voluntary pension insurance thanks to its clear definition in the Law on Social Insurance 2014. In simple terms, when you join these types, you will be able to participate. participate in the retirement fund and be paid from the retirement fund when they get old according to regulations.
Payment from retirement fund
Subjects receiving payment from individual retirement accounts in the payment from the pension fund will include:
According to Decree 88/2016/ND-CP, Article 24 stipulates that this payment amount will depend on the value of the individual retirement account as well as the payment plan specified in the contract of joining the pension fund with the same document.
Recipients of the pension fund can choose to pay monthly or one-time payments. The period during which the insured person receives monthly payments from reaching retirement age is at least 10 years. After 10 years, pension fund participants can receive a lump sum payment if they wish.
Distinguish between supplemental pension insurance and voluntary pension insurance
Comparing supplemental and voluntary pension insurance can help customers distinguish clearly and thereby make the right decision about which type to join for themselves.
Similarity
Both supplementary pension insurance and voluntary pension insurance are to help increase income when reaching retirement age for employees. Either way, you can participate voluntarily, it's up to you.
In addition, the contributions of participating customers are managed in the form of personal accounts. This is property owned by you - the insured person, and have the right to use it when you reach retirement age.
Differences
In essence, supplemental pension insurance is a policy of social insurance managed and issued by the State. Meanwhile, voluntary retirement insurance is a form of commercial insurance provided by a life insurance company.
Supplemental retirement insurance stipulates that participants include both employees and employers, and individuals aged 15 years or older. The subjects of voluntary pension insurance are employees and labor groups.
While the premium of the supplementary pension insurance is clearly regulated, the voluntary pension insurance premium depends on many factors such as age, gender, occupation and the product package participated.
Essentially, the supplementary pension insurance contributions are in the form of both voluntary and mandatory over certain periods. The benefit of voluntary pension insurance is that it is possible to contribute completely voluntarily.
In terms of payment benefits, the supplementary pension insurance will pay the entire profit earned from the retirement fund's investment activities divided among participants. Voluntary pension insurance pays according to the profit from the investment results of the investment fund selected by the participant.
In addition, if you want to withdraw your account early, for additional retirement insurance you will receive all contributions up to the time of withdrawal. Meanwhile, voluntary pension insurance is not like that. You are only entitled to receive maturity before the deadline if your working capacity is reduced by 65%, and you have serious diseases.
The comparison of supplemental pension insurance and voluntary pension insurance has its own advantages. You can save money with retirement funds and enjoy it in your old age with peace of mind.
