Pension Insurance: Certificate of Insurance and Voluntary Contributions
What is an insurance certificate
In 20-30 years, few people still think about their retirement age. Many people think that it is still very, very soon. In principle, it is, but as soon as we get our first job, the registration of the pension insurance certificate is carried out immediately, inplace with a workbook. In fact, such an insurance certificate is a small card, which indicates the individual number of the employee, as well as some of his data. On a personal account during the whole work practice, deductions are made on a mandatory basis. Contributions are made (depending on certain circumstances) either by the employer or by the person having the insurance certificate.
Elements of the pension system. First level
In almost all countries in the world there is such a system.It is called compulsory pension insurance. The name of the document is subject to change. This may be an insurance certificate, a policy or just a contract. However, most developed and developing countries are not limited to state social security. Many of them in the pension insurance system have two more levels: these are private corporate and individual savings. State social structures provide for people who have spent a certain number of years with their insurance certificate in their hands only a minimum, and often even less. Therefore, in order to take care of a decent standard of living in retirement, you should think about it in advance - in just twenty, or even thirty years. The system is such that the sooner an employee thinks about it and contacts the appropriate organization, the better.
Thus, an employer interested in providing its employees with a decent social package makes additional contributions to them for retirement. This can occur through an ordinary insurance organization. A specialized pension fund can also make such corporate deposits.Having finished his career due to age, the employee will receive additional funds for state payments on a monthly basis. Such a system is also a means of retaining employees in the organization, since in case of their dismissal all contributions are returned to the budget of the company.
Another and very important element of the structure of the pension provision is individual deductions of an individual. Here it is not necessary that he have permanent employment or work at all. A citizen just needs to contact the insurance organization (or fund) that provides additional pension insurance. Everything is done very quickly. A contract is drawn up on the spot and a document is issued to the client (it can also be called the "Insurance Certificate" or "Policy"). In accordance with it, a citizen periodically deducts funds to his personal retirement account (the contribution amount and currency, as a rule, can be chosen), and when leaving for a well-deserved vacation, he receives them in a convenient manner.
Thus, having on hand a compulsory state insurance certificate of a pension fund, everyone, moreover, should take care of additional financial sources in the future, albeit far enough.This is very important at a time when the ratio of the working-age population to the disabled is decreasing every year.