Research About Social Security Gap And Solution

Basic pension insurance is a kind of social security, which plays a very impor-tant role in people's life. The aging problem results in the great burden on the government. To solve the problem effectively, government decides to transform the pension system from pay-system to partial accumulated system. However, the gov-ernment has to face with the great cost for the transformation. Moreover, the gap is becoming bigger and bigger. In this thesis, the fundamental condition of the pension system in China will be introduced in the first part. For the second part, I mean to estimate the cap through proper actuarial model and put forward the solutions. At last, I will make use of the Markowitz investment theory and copula function to find the investment portfolio with the minimum risk given the investment return.