The Study On The Commercialization Of China’s Old-age Security System

Elderly being properly looked after is always an important subject faced by human society. Globally, old-age security system during its historical evolution process mainly witnesses three changes, from family security to social old-age security, from pay-as-you-go pension system to fund accumulation pension system, from single-pillar pension system to multi-pillar pension system. Chinese people has a different, even unscientific understanding of the relationship between commercial insurance and social security for a long time, which results in the failure of commercial insurance to bring its role in enhancing China’s social security system into full play. As a result, the cause of social security in China is encountered with a sea of difficulties.Through analyzing difficulties and challenges faced by China social security system, especially social security system for the elderly, drawing lessons from the reform, progress and practice made by advanced countries in their old-age security system and from the experience of Hongkong in its construction of old-age security system, this paper starts from the nature and functions of commercial pension insurance and has a discussion over the relationship between the government of China and the market as well as their borderline in the process of China’s old-age security system construction with the conclusion made as follows:social security system has two definitions-"narrow" and "broad". Commercial insurance is a category corresponding to social insurance, thus shouldn’t be excluded from the whole social security system. Old-age security system construction in China must be market-driven with commercial pension system being the main pillar and an important ingredient of China’s old-age security system. It is an inevitable choice to reform and enhance China’s old-age security system.First, through reviewing the development path and status quo of China’s old-age security system, this paper evaluates the operation of China’s old-age security system as well as looks for and ponds over the problems existing here.Second, based on these problems, this paper selects4international cases with their own characteristics to make a comparative study with the purpose of absorbing useful experience and enlightenment from4different angles for the sake of the construction of China’s old-age security system.Third, it makes an analysis over the influence of aging problem in Hongkong on its economic society and elaborates on Hongkong’s old-age security arrangements after reviewing its social security system.Fourth, with a theoretical analysis over the difference between commercial insurance and social security in risk disposal as well as the respective advantages and disadvantages of governmental agencies and commercial insurance companies in supporting social security system, it concludes that they have different purposes, but with equally important role and also explains the reasons for commercialization of China’s old-age security.Fifth, it constructs the overall framework of commercialization of China’s old-age security. First, it tells the target model in case of commercialization of China’s old-age security system; second, it describes and analyzes the basic situation of involvement of commercial insurance company into the commercialization progress of China’s old-age security at current stage, on this basis, it states the positioning and realization approach of commercial insurance companies in the old-age security system; third, it focuses on the tax preference to commercial pension insurance; at last, it analyzes the realistic constraints on the commercialization of China’s old-age security system and comes up with related countermeasures in respond to these constraints.