Management Of Pension Funds' Investment

Pension issue of human society is an eternal topic from the first beginning. The decline of birth rate as well as mortality rate in addition with the extension of the average life expectancy has led to the aging of the population. Since China has been implementing the family planning policy and the extension of life expectancy, the aging rate of China's population structure will be faster. The population of developed countries is aging with ample property, but China's population is aging with poor situation. The aging process is beyond the economy development, thus the society could hardly bear the aging of the population.The direct consequence of accelerated development of China's population aging is that the individual accounts fund in the pension fund are occupied by the pooling accounts fund to pay retired personnel of the pension in order to offset the increasing trend of pension fund's shortfall. How to ensure that the value of pension funds to preserve and increase and improve the management of the pension fund's operation and investment income, has become extremely important under the situation of the accelerated development of aging of the population.This paper starts off from the international comparison of pension fund's operation management, analyze the operating mode of pension funds in the more representative nations such as Chile and the United States. With China's actual conditions, I propose the establishment of the decentralized control mode in relative concentration, and suggest that investment channels of the pension fund should be relaxed to help pension funds to enter the capital market to obtain a higher return on its investment. At last I make specific recommendations on capital investment tools and investment method when the pension fund enters the capital market.