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Research On Optimal Contribution Rates To Fund Pension Systems

Posted on:2012-06-16Degree:MasterType:Thesis
Country:ChinaCandidate:T T WangFull Text:PDF
GTID:2219330371455575Subject:Finance
Abstract/Summary:PDF Full Text Request
With the global economy developing, the improvement of healthcare has caused the aging population trend to grow; therefore research on the pension annuity has become increasingly important. World economic development trends of polarization have become evident, and the obvious differences of the economic level between developed regions and undeveloped regions have varied greatly, so they have different requirements of the annuity. This paper is dedicated to building an optimal model of annuity in two different kinds and researching of pension annuity differences between different regions in the contribution rate.This paper investigated the impact of factors related to the contribution rate under a fully funded system and partly funded system. The sound analysis is carried out at four levels: Firstly, based on the principle of balance of payments before and after retirement, this article establishes a fully funded system in the contribution rate under the actuarial model to analyze the contribution rate of each variable's impact. Secondly, under the partly funded system, this article uses optimization theory to establish contribution rate of individual model, and the enterprise contribution rate model under the PAYG system, and respectively solve personal and business's optimal contribution rate model. Thirdly, based on the established model, we selected variables which can reflect regional differences, such as population growth, individual wages and social average wage rate, wage growth, and growth rate of effective labor units and so on, in order to specifically analyze the different contribution rate in different regions. Finally, the article analyzes the single factor's sensitivity. Model analysis shows that the average individual wage and social wage rate, wage growth and the single person's effective labor rate are inversely proportional to the individual optimal contribution rate, proportional to the optimal contribution rate of business; and population growth is inversely proportional to personal best optimal contribution rate, and is inversely proportional to business optimal contribution rate. The overall analysis results show that the article contribution rate of less developed areas should be higher than the contribution rate in developed regions.
Keywords/Search Tags:Pension annuity, Contribution rate, Utility maximization
PDF Full Text Request
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