| Along with China’s rapid economic development, the life of the people is becoming better and better, and the medical treatment level is improving, bring the average lifespans of people extended. On the other hand, after our new China founded, there being a baby boom population and taking special one-child policy, elderly people are more and more, and new birth rate is falling sharp, the population aging question becomes serious.The population aging question is focused by our government and civilians, how to run the insurance premium paid by the on-the-job to make them have a good life after retirement becomes a heated debate. Now, Chinese pension fund consists of three parts. The first is our state social security fund controlled by the government, second is basic pension funds, the third is supplementary pension fund which is the enterprises voluntarily pay for the workers. At the now, the first part and the last part both have been in the capital market many years, making use of a variety of investment tools, and receive lucrative investment returns. However, the basic pension fund which in the dominant position has a very narrow investment channels, only can save it in the bank and buy some bonds, so the benefits are very low. If we take into account of the factor of inflation and management fee, the real returns may be negative.Across the world,many countries’ pension has a lot of ways to invest, especially in the capital market. Pension insurance funds and the capital market have a good relation. First is pension fund has a big size which need to appreciation, it can’t leave the capital market; second is the capital market also needs a long-term and big-scale fund like pension insurance fund, making it more perfect,Although our capital market is not yet very mature, the national social security fund still has a successful investment experience. Due to the basic pension fund has a different quality from the enterprise annuity and the national social security fund, relate to the people’s retirement life and the social stable, so it has a big different invest operation from the other two funds.This article first introduces the background of the basic pension fund invests in the capital market, realizing Chinese ageing process is accelerating. Because our country used to be the pay-as-you-go pension system, collecting the corresponding premium according to how much need to pay the retired worker, nearly no balance. In1997, our country began to abandon the pay-as-you-go,trying to use the new partly-funded pension system. Basic pension fund has two parts, one is the social pooling account, mainly the enterprise pay the fees, to pay the current pension; another account is the personal account which is used to pay the employees after retirement, from the on-the-job workers.As a result of pension insurance system conversion, before the reform of the retired worker and the retired worker shortly after the reform, in fact, their account has no money. So the on-the-job worker’s personal account is used to pay the retired worker, personal account run empty. At the same time, the basic pension fund only can be saved in bank and buy bonds, no other investment channels, only low interest in value.But if deduct the inflation factor, the gain may be negative. The basic pension fund needs to self-salvation, trying to preserving and increasing the value.Then introduce our country’s pension insurance and some related concepts, and use a large amount of data to analyze the present situation of our country’s basic pension fund, pointing out the existing problems. First question is lack of a good legal system environment, up to now, there is no law specifically for the basic pension fund. Secondly, although our country has achieved the provincial level, there is a long way to achieve the ultimate goal of the national level. Thirdly, the personal account has no money in it, it’s empty. Fourth, the investment channel is very narrow, only can save it in bank and buy bonds, the yield is very low. The last is the management system confusion, lacking of efficient supervision, some funds has been corruption, misappropriation and waste, people don’t know where the money they have paid.In the view of the above situation, I analyze the necessity and the feasibility of the basic pension fund investing in the capital market, thinking this way can deal with our country’s aging population problem and meet the internal need of hedging and risingin value of the basic pension fund.Because the long-term and large size of the pension fund, it’s very suitable to invest in the capital, and the capital market also can provide a good place and a variety of investment tools for the basic pension fund, and there existing a successful investment experience of social security fund and enterprise annuity to be learned.This article selects three representative countries’ pension fund’s investing and operating experience to analyze. One is the United States, because its capital market is very developed and its pension system has been established for over two hundred years, the fund is running effective. It’s worthy to learn from it. Second country is Chile, just for its successful reform and transition of pension system. Third is Singapore, because their cultural tradition and the capital market situation are similar to our country. Through analyzing the three countries, I get some enlightenment about the pension fund investing in the capital market to our country.Next, I calculate the returns of the basic pension fund under the existing investment tools, comparing to the social security funds’ returns. At last, I get the optimum investment portfolio and proportion of the basic pension fund through the Markowitz’s investment portfolio theory and Lingo software.In the final, I put forward some recommendations to perfect our basic pension funds’investment and operation. First of all, try the best to perfect the relevant laws and regulations uninterrupted. Secondly, gradually raise the level, trying to achieving the ultimate goal of the national level pooling on the base of the province level pooling to realize the unified standard and economy of scale. Thirdly, we should try our best to making the personal account have enough money. Forth, expand the investment channels of the basic pension funds to raise the returns. At last, we should set up a special organization or entrust a professional organization to manage the basic pension funds’investment and operation, and also establish an effective supervision system. |
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