Savings Effects Study Based On The Provincial New Rural Social Pension Insurance

The new rural social pension insurance (hereinafter referred to as "the new rural insurance") which is considered as a leap of exploration on national pension insurance system in rural areas has brought good news for hundreds of millions of the rural residents. The original intention of the policy is to ensure the basic needs of the rural elderly residents, however, the effects of the current new rural insurance policy are quite limited because the policy is very low at the payment level, and its incentive effects are not sufficient, meanwhile, the supply amount of the basic pension is small and he adjustment mechanism is not complete. From the perspective of the savings effects of the new rural insurance, the thesis has taken Qinghai Province as the research area to analyze the effects of the new rural insurance on the household savings through mathematical proof and empirical research methods. The research shows that since the implementation of the new rural insurance policy in Qinghai Province, the policy has brought the crowding effect on the savings of rural residents indeed but the effect is not obvious, so the rural pension insurance policy does not largely improve rural residents’savings for pensions.The main body of the thesis will be divided into seven parts.The first part introduces the topic background, the research significance, purposes and the research methodology. The thesis also summarizes the research status of the topic both at home and abroad.The second part explains the concepts of the pension insurance and the savings, then expounds the life cycle theory, the amendatory life cycle theory, the permanent income theory and the theory of the Overlapping Generation.The third part reviews the development of China’s rural pension insurance, introduces the situation of the new rural insurance policy’s implementation in Qinghai Province, and analyzes the current situation of rural residents’savings in the province.The fourth part uses the Diamond’s Overlapping Generation Models (OLG), combining with the relevant provisions of the new rural insurance policy and its extension, then builds a two-age overlapping generation model which is satisfied to analyze the new rural insurance savings. Through the model-based reasoning, the thesis conducts the mathematical verification on the the new rural insurance’s savings effects and its factors.Based on the life cycle theory, the fifth part builds a linear econometric model of the relationship between the new rural insurance and the savings. The thesis selects the actual data of22county areas in Qinghai Province, uses the EVIEWS7.0to conduct linear regression and parametric tests, and then tests the savings effects in Qinghai Province from an empirical perspective, coming to the conclusion that savings effects of the new rural insurance are limited, moreover, the thesis analyzes the main reasons of the under savings.On the basis of the previous analysis, from the perspective of savings, the sixth part puts forward several policy recommendations on improving the rural pension insurance system and promoting the integration of urban and rural pension insurance system effectively, aiming to achieve optimal effects through continuous improvement and adjustments of the policies so as to enable the policies to be in line with the trend of social development as well as to effectively solve the practical problems of rural elderly residents.The seventh part is the conclusion and will briefly summarize the content of the thesis.The new agricultural insurance policy in recent5years, the results are undeniable. From the Angle of saving, analyzes its policy effect, not only make up for the academic circles in the new farming keeps saving effect research, is the economic effect of rural old-age insurance system was validated.The new rural social pension insurance policy has been implemented for five years and the achievements are undeniable. From the perspective of the savings, the thesis has analyzed the effects of the policy, not only making up for the vacancy in the academic study of the savings effect of the new rural insurance, but also effectively verifying the economic effects of the rural pension insurance system. At present, China is about to enter the entire stage of the pension insurance for the urban and rural residents. Under such background, it is quite necessary to continuously improve the existing rural pension insurance system to give full play to the basic role of the system integration, making it the strong backing of China to realize the equalization of basic public services in both urban and rural areas.