Cost And Risk Analysis Of Individual Accounts Of Chinese Basic Pension

With the increasing trend of aging time, we choose the partially-funded as our pension system. System reform experiences have been accumulated in every aspect. The basic pension system is much more mature and is in key period of stabilization and sustainable development. Hence, the costs and risks of individual accounts attach our attention. In the process of improving the partially-funded basic pension system and the policy of filling individual accounts, it makes very important sense by studying the costs and risks of individual accounts.Pension as part of social reserve fund, the most important purpose is dealing with risks and ensuring the stabilization of social and personal life. But the individual accounts themselves are full of risks and spend large costs. This thesis innovation is its researching angel: analyzing the individual accounts from undertakers of costs and risks. Nominal rate is the embodiment of individual accounts' costs and risks and nominal rate risk is our researching keystone.Except for the individual accounts system itself, the management model of individual accounts' fund deeply affects the costs and risks. Now our social security fund is facing problems of fragmentized management, highly cost, low manage efficient. The funds of public accounts and individual accounts haven't been divided and the government has the rights of investment and management. Hence, management risks that transmit from public accounts to individual accounts must be undertaken by government. The whole policy holders much undertake the risks of depreciation risks, political risks, management risks and personal longevity risk, unemployed risk and so on.Last, this thesis suggests introducing centralized management system as management model of individual accounts fund. At the same time, public accounts and individual accounts must be departed, pension administrative levels should be heighten, individual accounts must be filled and healthy supervision system must be set up. All of these are in favor of lowing management costs and enhancing risk control.