An Exploration On The Individualization And Annuitization Of Pension Fund

The introduction of IA (individual account) is the milestone of China's pension reform,however,many problems are exposed when IA scheme is implemented in China. Should pension fund be individualized completely or partially? Should IA fond be managed by competitive private companies or by government departments? Should IA balances be annuitized compulsorily or voluntarily? Can individuals have some choices? In order to solve these problems,I turn to international perspective and explore five typical models:Chile's AFPs,England's Personal pensions,Poland's IA fund,Singapore's CPFs and HK's MFPs. How do these models operate? Why does IA take on different models in different countries? With these problems in mind,based on the analyses of general and specific backgrounds of IA reforms,I find that:IA reform takes on different forms in different countries just because of different political,historical and cultural backgrounds. So China's IA reform should pay more attention to China's economic and social reality,but not coping international models. China's IA reform should have it's own guiding ideology and targeting model.This paper is made up of three parts compose of seven chapters. In the first part,problems,faced up by China's IA reform are raised,in the second part,I turn to international perspective,chapter 2 points out the general background of IA reform,chapter 3 introduces five typical IA models,chapter 4 analyses the specific political,historical,cultural and ideological backgrounds of different models,pointing out the existing problems and future directions. The last part concludes,chapter 5 presents the guiding ideology for China's IA reform,chapter 6 presents three different models for different development stages,chapter 7 presents the retirement age and annuity choices for China's IA reform.