Withdrawing social insurance at one time - "the benefits do not outweigh the disadvantages"

BBK - The number of workers completing procedures to withdraw social insurance at one time in Bac Kan is increasing for many reasons. The fact that people withdraw from the social security network is a worrying reality today.

Social insurance agency staff propagate to each household about insurance policies.

In mid-2021, the Covid-19 pandemic broke out strongly, causing Ms. LHT, residing in Song Cau ward, Bac Kan city, to lose her job because the company in Ho Chi Minh city fell into recession and had to cut staff. Returning to Bac Kan, she continued to pay social insurance and hoped to find a job or wait for the old company to call but was unsuccessful. The money she had saved for so long was only enough to spend for more than a year. Meanwhile, the cost of living, taking care of her elderly parents and children's education was quite expensive. With no other choice, Ms. T. decided to stop paying social insurance to complete the procedures to receive a one-time subsidy after nearly 20 years of paying social insurance. She invested the money she received in trading, running the market, etc.

In the case of Mr. D.DH, residing in Ba Be district, he withdrew his one-time benefit for another reason. He had paid social insurance for 18 years and now discovered that he had liver and kidney disease at the end of 2021. With high medical costs and his health declining, Mr. H. decided to complete the procedures to withdraw his one-time social insurance benefit. "I'm not sure if my health will last until I receive my pension. So I'll just withdraw it all at once, deposit it in the bank for some interest, and then go home and raise livestock to supplement my health care," said Mr. H.

The reasons for the above two cases are quite common for those who decide to withdraw their social insurance at one time. Since 2021, there has been a large wave of workers returning to Bac Kan from other provinces and cities due to the impact of Covid-19.

According to statistics from the provincial Social Insurance Agency, in 2021, the number of people paying one-time social insurance was 2,421. In 2022, the industry settled one-time social insurance benefits for 3,106 people. In the first 6 months of 2023, this number was 2,418, an increase of 564 compared to the same period in 2022. The number of new participants in social insurance is not enough to compensate for the number of people who stopped paying and requested to withdraw from the one-time subsidy regime. This is posing many consequences and challenges for social security.

According to Ms. Nong Thi Thuy, Deputy Director of the Provincial Social Insurance: Employees should consider carefully before deciding to complete the procedures to receive social insurance at one time, for the following reasons: First, the amount of money received when receiving social insurance at one time is less than the amount of social insurance paid. The higher the monthly payment, the greater the difference when withdrawing. Second, the time of social insurance payment that has been calculated for receiving social insurance at one time is not counted as the time used as a basis for calculating other social insurance regimes. Third, receiving social insurance at one time will no longer be in the social insurance system protected by the State. People who withdraw social insurance at one time will lose the opportunity to receive a monthly pension when they reach retirement age, or if they are eligible, the pension will be lower, due to the deduction of the time of social insurance payment received at one time.

In particular, for those with health problems, withdrawing social insurance at one time will lose the opportunity to be granted a free health insurance card during the pension period for health care. Along with that, relatives will not be entitled to funeral benefits and death benefits if the recipient of social insurance at one time unfortunately passes away.

Workers who receive pension benefits will have more benefits than those who choose to receive social insurance in a lump sum. Receiving social insurance in a lump sum means that workers leave the social insurance system and deprive themselves of basic social security rights.

Recently, when having the opportunity to meet again, Ms. LHT could not hide her worries: “Things are not going as smoothly as I originally planned. Several shipments have been damaged by unfavorable weather, causing capital loss. At this rate, when I spend all the money I withdraw from social insurance at once, I don't know what will happen to my family's life? If I had known it would be like today, I would have persevered in applying for a job and continuing to pay social insurance, so I would have more peace of mind when I get old”…

As for Mr. D.DH, after a period of intensive treatment at a central hospital, he has now recovered. His health has been restored, so Mr. H. has gone back to work and joined social insurance again, but the previous period of social insurance payment is no longer counted because he received it once... "It's a pity but there's nothing we can do...", Mr. H shared.

From the above stories, workers need to carefully consider the “gains” and “losses” when receiving social insurance at one time, to avoid short-term benefits but long-term disadvantages. The Social Insurance Industry recommends: If you are temporarily facing difficulties, reserve your participation time, when returning to the labor market, you can continue to participate in compulsory social insurance or continue to pay voluntary social insurance to have the opportunity to enjoy retirement benefits./.

Source link: https://baobackan.com.vn/rut-bao-hiem-xa-hoi-mot-lan-loi-bat-cap-hai-post53771.html