Study On Basic Pension Fund Deficit In China

The social security system is the social "safety nef" and "shock absorber", it is an important part of building a social harmonious society. The basic pension system is the core of the social security system, which plays a very important role in constructing our socialist market economy and stabilizing society. As the material base of the basic pension system, the basic pension fund decides whether basic pension system can be implemented smoothly. After more than 20 years'development, China's basic pension system has made some achievements.The current system of basic pension insurance of China is operating according to the decision made by the state council of the People' Republic of China on establishing uniform and basic system of insurance of worker of enterprises in 1997, but there are a great deal of difficulties and questions because of the system design and the practical operation:the transitional cost is large, the phenomenon of enterprises escapes pension, the fund management system is not perfect and so on. These problems bring about huge deficit of fund. Furthermore, China's family planning policy has resulted in lowering the birth rate and the citizen life expectancy increasing since reform and opening up, which increases the proportion of aged population. It is predicted that the elderly population in coming decades will continue to grow rapidly.The problem of population aging has a tremendous impact on the balance of the fund. Currently, the biggest problem in the reform of pension system of China is short of capital. With the fund deficit is becoming wider and wider, it has caused the serious financial crisis that the current pension system is faced with. Solve the problem of the pension fund deficit, which can helps us to apply the Scientific Outlook on Development, develops social security, and promotes construction of harmonious society. In this paper, the author analyzes the reasons for the fund deficit in depth and proposes several countermeasures and suggestions for the fund deficit.