Old-age Insurance Payments Crisis And Reform

In 1997, the combination form of social overall planning and personal account was determined in china as the target mode of the security pension system reform, and it transformed from the traditional pay-as-you-go system to the combination of both pay-as-you-go system and individual funded system. Under the background of the world's entering into the aging peak times,our country has also stepped into the aging society. A larger number, a deeper level and a longer lasting of the aging population have been shown at the beginning of this century. The pressure of growing aging population has put the retirement insurance system, which itself was pressed by the operation of the empty personal account, into another disaster. This is one misfortune after another. The endowment insurance system has faced a serious payment crisis.Judging superficially, it seems that it was caused by the growing aging population; however, the deep-rooted reason should lie in the low corresponding level between rights and obligations in the retirement insurance system. The payment period would be correspondingly shortened as the result of the extension of life expectancy. Whether could there be a system that may integrate the three key factors—the insured person's payment years of his retirement insurance, his replacement rate and his retiring age, into an appropriate level and then achieve a good mechanism of supply and demand balance in its operation?This paper centers on finding a balance point in the retirement insurance system between rights (the age of receiving retirement insurance) and obligations (the years to pay social endowment insurance in service), and this point would decide an appropriate age for retiring, which would be of great importance and it would become a key factor that influences the balance of social pension insurance fund. Based on the actuarial studies and a large amount of collected data, the thesis elaborates that prolonging the age of retiring would be an effective way to solve the financial problems caused by the crisis of growing aging population.