Effectiveness Analysis Of The Basic Pension Insurance Personal Account System Based On Replacement Rate

In order to cope with the increasingly serious problem of population aging,improve the efficiency of the basic pension insurance system. On the basis of drawing lessons from foreign experience, we build the personal account system in China, creatively combine with social pooling. Among the expectation, this system has been running for nearly twenty years. However, the individual account system is in a difficult position, empty account, low fund yielding rate, backward management style and so many problems to be solved. The focus of this paper is focused on whether the individual account system can effectively play a role, if not, how to improve this system. From the point of view of the social average wage replacement rate and on the basis of financial balance, measure the effectiveness of the current system of individual accounts under the known conditions, and through the simulation analysis of the impact of various factors on the impact of replacement rate, and find out the effective measures to improve the system of personal account.Data calculation shows that, under the current management mode, the actual role of the individual account system is far less than expected. low fund yielding rate with fast grow social average wage and early retirement, these factors influence the function of individual account system, particularly the low fund yielding rate.Calculation also shows that when the fund yielding rate close to the social aver-age wage growth rate, the replacement rate will be maintained. But under the conditions of low fund yielding rate, particularly the fund yielding rate and social average wage growth rate varies greatly, the adjustment policies of deferred retirement, delay to receive pension will have little effect.Data simulation shows, in the social average wage growth rate of 7% and retirement age of 65, the replacement rate of 25% needs fund yielding rate of 6%, the realization of this rate is feasible. Therefore, in order to improve the effectiveness of the individual account system, the management style of the individual account fund must be reform as soon as possible to improve the fund yielding rate, and under this condition, promote the reform of the retirement policy step by step.