Prospects For The Development Of Professional Pension From The Status Quo Of China's Old-age Security System

This paper consists two parts. The first part is the China Pension System analysis including five chapters. Firstly, the author depicts more and more serious problems in the social pension security system in China aggravated by the accelerating aging society and then reviews the evolutionary changes in the pension policies in China ever since liberation in 1949. The author also conducts an analysis of the main problems in transferring from the old pension system to the new system, primarily focusing on such issues as the pension fund deficits in the process of unifying the pension system, i.e. the creation of the personal pension account, the low returns of pension funds, the expanding of the social pension system, the avoidance of tax, and the less motive on the part of enterprises in joining the new system due to the heavy burden. Based the analysis and comparison of the pension systems in foreign countries, the author tries to illustrate the future development of the pension system in China, and generates two perspectives, that is, commercial insurance will have a different impact on the different social systems and the establishment and perfection of an effective social security system is of paramount importance nowadaysThe second part touches upon the future business mode of professional pension companies in China. To start with, the author describes the relationship between trustees and agents in the employer pension system, and the positioning as well as the operations of enterprises in the employer pension system in China. Based on a detailed analysis of the strengths and weaknesses of different financial institutions such as commercial banks, trust agents, funds, securities, insurance companies, etc. as well as the role they play in the employer pension system, the author also discusses the strengths of professional pension companies in the pension market and the kinds of professional services which they can provide. The author is of the opinion that through the competitive products created by themselves and a firm reliance on the creditability and professional services provided by the parent insurance company, using innovation market strategy, improving the information management system, and building the brands and competences of human resources, professional pensions companies in China will definitely play an important role in the pension market.