A Study On The Pension System Of China

The crisis of the aged population has been a global problem, in this respect our country is particularly serious. There are several reasons for that. The first reason is that the fundamental number of population is over large and making the absolute quantity of the aged population excessive; Secondly, it is in the economic development early period that our nation turn into the aged society, and the national power is relatively weaker, therefore it can't undergo the hardship of providing for the aged. Thirdly our nation will come up against the peak of aged-population from 2010 to 2035, it is very urgent for us to cope with the hard situation. Accordingly through several years' exploration and practice our nation has established the pension system that requires the combination of social pooling with individual accounts. And it also has made a positive effect to social stabilization, especially to the progress of reforming nation-possessed enterprises. But along with the thorough reform and the development of the situation, some shortcomings have been exposed out under this system. In the first place it doesn't cover all people, and the numerous farm-workers, the individual private workers and the farmers, can't benefit from this system, so it brings a tremendousburden of providing for the aged people. Next the enterprises' employees and the officers or the organizations' employees accordingly belong to two guarantee systems ,and there are little relations between them ,as a result it influences the reasonable distribution of labor force resources and influences the economic development. At last it is shortage to accumulate the fund, but the latent debt amount is immense large and results in the crisis of payment. We should reform and amend the current system in order to solve those problems. To this point, the article will commence from the economics theories analysis in relevant to the pension system, and draw lessons from some countries that have successful experience in the development and reformation of the pension system, and put forward the speculation named "three pillars" about the pension system in Chinese characteristic by according to the concrete situation of China, and try to make the problem get the satisfactory solution by constructing institutions .Three are three parts to constitute the thesis. The first part generalizes and expatiates upon the economic principles concerning the pension system. From the evaluation of the gross demand and the total supply of the pension products. The part will emphasize the issue that the dynamic equilibrium of the supply and the demand isthe key of the pension system. And the part will set forth the interaction relationship between the pension and the development of economy in accordance with the influence that the institution bring to the reassign, the save, the labour market and the capital market. The second part analyzes the reformation course of the pension system and the main problems of our country. Through looking back the development course of the pension system. Seek the orbit of the reform. Perfect and the continue point. Through analyzes. We will indicate the direction and necessity of reforming and amending the current system, by the analysis of the successful experience of the multi-levels pension system in Canada and the "three pillars" pension system made by world bank. Adapting to the concrete situation of china, by comparing and contrasting with china's "three pillars" made. We will setting up the necessity and possibility of establishing the pension system. The third part is the key stone of the thesis and in this part the speculation of setting up "three pillars" of Chinese characteristic is put forward. By the elaboration of the basic principle that pension system should insist, and will calculate the cost of receipt and expanditure variety and the conversion under the new mode and the old one.What is the "three pillars" pension system in our country whichis put forward in the article? The first pillar is the foundation pension tha...