A Full Caliber Research On Pension Demand And Suggestions To Improve Policy In China From2011to2035

Now, prediction for the demand of pension system covering the whole country is veryimportant to deal with the old age crisis in the future. To research this question, this studydesigns four parts separately discussing the research background of the pension systemcovering the whole country, the historical evolution and logical laws of pension system inforeign countries,the historical evolution and current situation analysis of kinds of pensionsystems in China,demand of all kinds of pension systems and the gross demand of pensionsystem in China.The fourth part shows the pension demand in China from2011to2035and provides suggestion for the current pension system based on the simulationoperation.The study concludes as follows:Firstly, China ’s pension system needs to carry out structural reform.The concretemethod is to combine the non contributory country basic pension with the individualaccount pension system.Although with a low payment standard, the non contributorycountry basic pension could provide a social relief type safety net for all people.While by clearing all personal property and increasing the return of investment rate, the individualaccount pension could achieve a higher level of substitution rate, substantiallycomplementary pension sources and improve the overall security level of pension.Secondly, the distribution of pension liability among government, enterprise and theindividual should be handled properly.The government Is mainly responsible for providinguniversal public pension plan and regulation and supervision for the pension market.Theenterprise could establish appropriate occupation pension to attract human resources,according to its economic income.The individual is assumed the primary responsibility forpension, mainly manifests inthe payment responsibility and effective managementresponsibility on the individual accumulation of pension.Thirdly, relationship between the social consolidated account and individualaccount should be handled well. Account separation to clear personal account attributes isthe first step.Then the government should assume the pension system transition costthrough widening financing channel for pension.Lastly, the individual account should befully funded through legislation and other means，and be managed under the professionalinvestment institutions in order to preserve and increase its value.