A Study On The Solvency Of China's Basic Old-age Industry

The solvency of the basis endowment insurance in the future will influence the fiscal safety and stability of the society,the aging of population made the revenue and expenditure of the basis endowment insurance more and more serious,the government also increased fiscal subsidy for endowment insurance.Meanwhile,research showed that the basis endowment insurance was confronted with huge stress of revenue and expenditure,the appeal of readjustment of the system was heard frequently.But it is the fact that the basis endowment insurance needs a thorough reform because it is related with so many people.The study discussed whether the basis endowment insurance would make both ends meet by itself regarding the sustainable existing system as the starting point on the premise that the government didn't reform the system.With the trend of the diversity of the basis endowment insurance,the paper focused on the regional system of Guangdong province.I hope that the research will provide some assistance to the study of the solvency of the endowment insurance in other provinces.The paper assessed the situation of the endowment insurance of the past 8 years in Guangdong province through improved comprehensive evaluation system of the solvency of the basis endowment insurance according to the relevant statistics of China Labour and Social Security Yearbook,Guand Dong Statistical Yearbook,Statistics communique of the National Economic and Social Development of Guang Dong province.The research discovered that although the current endowment insurance made ends meet owing to the relatively high coverage rate,it wasn't stable, especially for some provinces whose coverage rate of the endowment insurance wasn't high,the solvency of the basis endowment insurance was uncertain.At the same time,the analysis also indicated that we should concentrate on the profitable investment and ability to raise capital,and control Book reserve pressure exponent in order to solve the problem of endowment insurance with the aging of population.