The Pension Contribution Rate Of Personal Account Based On Life Expectancy At Retirement

China's present endowment insurance system is built on the partial accumulative mode which includes social pool and personal account. Individual account doesn't have the function of intra-generational income redistribution and belongs to private goods in nature. The contribution rate level of personal account not only affects citizen's disposal income presently, also affects their future basic life and expectation. According to current pension insurance system, the contribution rate of personal account can only provide the retired with ten year's basic life security. As average expectation of life increases, life expectancy at retirement is growing gradually and its average value of male and female employees is almost seventeen years at present. If the contribution rate of personal account were not properly adjusted by life expectancy at retirement, the retired facing longevity risk will fall into poor state. Based on existed research, this article aims to put forward the theoretical and policy basis of adjustment to the contribution rate of personal account by life expectancy at retirement.To guarantee basic life of the retired, this article establishes the contribution rate model of personal account according to long-term balance principle and analyzes the average level of contribution rate in the long run based on life expectancy at retirement. Considering the variables such as replacement rate of pension, return rate of pension funds, retirement age, some relevant coordinated tasks must to be done. This article put forward several suggestions about them.As can be seen through the analysis of the individual contribution rate of social security, we conclude that there is still a space for individuals to pay a rate. But the contribution rate of enterprise exceeds the affordable level. Therefore, we must intensify efforts with financial subsidies to decrease the social security fund gap.