A Study On The Demand And Policy Of Basic Social Endowment Insurance For Rural Residents

Recently,the issue of "agriculture,rural areas and farmers" has been paid more and more attention by the society.The 16 th National Congress of the Communist Party of China put forward "to coordinate urban and rural economic and social development" for the first time,and the 17 th National Congress of the Communist Party of China put forward the "to establish a social security system covering urban and rural residents to guarantee people’s basic life ",in which exploring the establishment of rural social endowment insurance system is one of its core aspect.Rural endowment insurance,as a weak link in the pension insurance system,should be especially paid concerns.In response to the guiding principle of “full coverage,basic security,multi-level,sustainable” of the 18 th National Congress,this paper analyzed the demand of rural social endowment security from three perspectives,i.e.income substitution rate,basic living demand and profit rate,and put forward the policy suggestions according to the conclusion of the study.The main contents of this paper include four aspects.First,the substitution rate calculation model is used to calculate the income substitution rate,the overall substitution rate of the basic pension and personal account respectively to clear the income substitution situation of the rural basic social endowment insurance in China.The substitution rate of the basic pension is measured and compared from the macro,medium and micro level respectively.Secondly,to measure the basic life needs from the perspective of basic needs of rural residents in China.Specifically,the life needs of poor counties and well-off life have been evaluated from the micro and medium level combining with the survey data analysis.From the macro level,the basic needs of rural residents living has been estimated using the linear expansion model,and the elasticity of food demand is measured based on the second almost complete system model.Thirdly,on the basis of the hypothesis of rational man and investment characteristic of social security,the research on the investment and financial management of rural residents has been carried out,and the yield condition of rural social endowment insurance and related investment and financial management mode is measured.Fourthly,combining with the above three parts of the calculation,the rural social endowment insurance has been defined at the appropriate level,taking Shanxi region as an example of policy research,summing up the “ troika” to improve the guarantee degree of rural social endowment insurance and increase the pension income.This paper draws out five main conclusions: First,under the framework of the relevant system of rural social endowment insurance,the substitution rate of rural social pension(basic pension)guarantee is insufficient.There are regional differences and differences among different income group,but the gap between urban and rural and domestic and foreign is even more obvious.Second,in the case of the absolute value of the basic pension unchanged,with the increase of farmers’ net income per capita,the basic pension substitution rate is declining.The relative level of the pension can be improved by raising the basic pension,enhancing the individual payment grade and extending the reference time.Thirdly,from the perspective of the moderate level of rural social pension demand,the rural social endowment insurance needs to be set a certain limit.It is suggested that the basic living standard of the residents in poor areas should be the lowest limit,and the income level of the well-off society should be the basis of the calculation of the moderate level.The current substitution rate of life demand is relative low and even cannot replace elderly food requirement.Fourth,based on the perspective of risk and benefit,the risk of rural social endowment insurance is lower and internal rate of return is the highest within the saving,rural social endowment insurance and commercial endowment insurance,which is suitable pension management for rural residents.But it is recommended to improve the operation level and profitability and improve the interest level of the rural social endowment insurance.In addition,the higher the rural social endowment insurance premium grade,the lower the internal rate of return.It is required to increase subsidies to enhance the rate of return.Fifth,the applicable rural social endowment insurance should meet the basic living standard,the substitution rate standard and the rate of return standard,while the comprehensive use of the "troika",increasing basic pension,increasing subsidies and improving the billing rate,to stimulate guarantee degree of rural social endowment insurance.Based on the research and calculation,five policy suggestions are given: First,to improve the basic pension to meet the people’s basic life demand as soon as possible.Second,a subsidy system with obvious gradient should be established to enhance the attractiveness of attendance.Third,the construction of rural social insurance fund operation should be speed up to improve the earning capacity of the social security fund.Fourth,combined with a variety of pension methods,multi-pillar pension system should be established.Fifth,publicity efforts should be increased to improve policy and information transparency.This paper puts forward relevant policy suggestions based on the comprehensive analysis of the substitution rate,basic demand and profit situation of rural basic social endowment insurance in China.The establishment of our country’s rural social endowment insurance system makes the social security system more complete,urban and rural social security system more perfect,which is significant to build a well-off society in China.Therefore,it is necessary to complete the relevant system as soon as possible and promote the construction of the socialist social security undertakings.