Old-age Insurance Funds Increase The Value Of Research

The population aging process all over the world puts a lot of pressure on some countries, in which the funding pattern is organized under the pay-as-you-go system.. In some countries that are in industrialization or in transition, pension has been higher than 15 per cent of GDP; and thus the pension system would nearly fall apart. Therefore, many countries began to change the funding patterns in order to pay for pension in the future. The funding pattern turns from the traditional pay-as-you-go pattern to the funded or partly funded pattern. In accordance to the national conditions, China will construct the state pension system by partly funded pattern integrating social pooling with individual account, by which a social account fund and an individual account fund will be constructed. However, it is in the supplementary pension system that the individual account fund will be formed by other patterns that are of more flexibilityThere are many problems about the pension. One of them is the fund investment, which will be discussed in this paper. The dissertation attempts to discuss a way in which the fund may be invested in capital market so as to gain some yields and cure finance risk to some extent. The dissertation includes five parts.The first chapter briefly discusses the evolvement of the pension system. According to economist North, the evolvement is ascribable to the existence of uncertainty such as the transition from unofficial pension system to official pension system. However, the transition from the pay-as-you-go system to the funding scheme is due to fiscal plight and population aging, with which a majority of countries have been confronted since the World War II . The definition and connotation of the pension will be discussed in the second half of the part.The second chapter will set forth the status quo of the fund investment. It is believed in the paper that deficiency in the management system of the pension fund is the root cause of the problems that lie in the state of the fund investment. So constituting a disciplinary management system is a key condition, which can be a pledge for the security and profitability of the pension fund.To organize the discussion of the fund investment here, it is useful to distinguish between two separate dimensions in the third chapter. One is the significance of the investment, which is embodied through three aspects as follows: 1. to make balance of the revenue and expense; 2. to ensure the smooth operation of the system; 3. to reduce the pressure brought about by the population aging. The other one is the intrinsic requirements that the portfolio of the pension fund must meet, including the security,liquidity and profitability.The fourth chapter will discuss the status of the pension fund overseas. Here four questions will be studied: 1. the regulation of the fund investment; 2 the portfolio of the fund investment; 3 the trend of the fund investment; 4. the inspiration from the fund investment overseas.The fifth chapter will deal with the social pension insurance. For the social pension insurance, at present the pension fund, as a institutional investor, should be brought into our capital market by moderately-collected pattern under the supervision of the government, which on the other hand will entrust the investment of fund to fund management corporations in order that these corporations can use some financial tools to maintain the security and profitability of the pension. Such arrangement will help to maintain the sustainable development of the pension system, subject to the population, the system and the finance.