Research On Pension Issurance For Aging Population In China

China has now precociously evolved into an aging society. A significant amountof people remain financially vulnerable even when they are about to retire. As animportant social financial support, the pension insurance is now facing a lot ofrevolutionary challenges. The problems of limited coverage, low level of protection,historical and hidden debt, unfairness of the system, and imperfection of legal systembecome even more prominent. Therefore, it is urgent to formulate a promisingenvironment for the revolution and development of our national pension scheme, bytaking advantage of a low-cost labour market and the rise of our current economics.This paper investigates different aspects of our national pension insurancescheme including its history, its current situation, its circumstance, its system, and itsmode. In addition, after combining our national condition with the foreignexperiences in designing and reforming pension insurance systems, this paperanalyzes the key points of our national pension insurance reform. Based on theanalysis results, several suggestions on how to improve the construction of ournational pension insurance system in the future is provided.Unlike some previous incomprehensive studies, this paper adopted acomprehensive, systematic and dynamic way of thinking, and thoroughly discussedthe interactions between environment and pension insurance. Here I divided theinfluential environment of pension insurance into two categorized systems, namelyEconomic system and Social Cultural system. The Economic system is composed offour sub-systems: Macroeconomic environment, financial environment, fiscalenvironment, and tax environment. The Social Cultural system is composed ofanother six sub-systems: Social environment, population environment, cultureenvironment, technology environment, law environment and the supervisionenvironment. All those systems and subsystems influence and interact with each other,penetrating and intertwining to form a breeding broad of the pension insurance system.This is an innovative method to conduct pension research.On this basis, this paper proposed a more systematic and complete pensioninsurance system, including: at the cognitive level, this system has to properly dealwith the four critical relationships, which are between firstly social harmony goalsand economic development goals, secondly fairness and efficiency, thirdlygovernment and market, and lastly urban and rural areas；at the operational level, it includes promoting employment, improving the money market and capital markets,innovating financial and tax policies, establishing market-oriented operations,perfecting legal system and reforming supervision and administration, etc. This seriesof measures were learned from the successful examples of western designs, whileconsidering our current national circumstances.Besides, this paper also comprehensively studied the risk attributes and riskpoints of the pension market. Based on the full risk recognition, this paper outlines thefive components of the whole process risk control, which are operational control,supervision, internal control, portfolio control， and government assurance. These canbe the guidelines of operating the pension market, maximizing the profit andminimizing the risk.An effective way to cope with this progressively aging population will be crucialfor the stability and sustainability of our entire country. Apart from the innovation inboth theory and research methodology, this work also engages in a meaningfulpractice of introducing commercial insurance companies into the social insurancesystem, and the proposed comments and suggestions can be referenced in the futurefor filling the gap of pension policy, breaking the boundary between urban and ruralpattern, and promoting the interest adjustment.