The Research Of The Basic Retirement Insurance Effect On The Consumption Of Urban Residents

In recent years, the lake of national consumption has become a shackle to economic growth. As the guarantee of basic life in retirement, workers’ basic annuity is playing an central role in the in streams, level and expectation of urban residents’ income. Its development will have a profound effect on consumption growth in the future.As our county’s aging population degree is deepened, there will be a growing army of elderly living on basic annuity for daily consumption. Accordingly research on the relationship of urban residents’ consumption and basic annuity level will has typical significance.This paper tries to study the relationship between the basic annuity and urban residents’ daily consumption theoretically and empirically. It uses the 2006 to 2014 time series data of urban residents’ disposable income, urban residents’ daily spending and how much they drawing their basic annuity basing on the theory of life cycle model for analysis. The conclusion is that endowment insurance spending promotes the growth of urban residents’ spending. Therefore, as the endowment insurance spending increasing the urban residents’ spending level will increase too,but compared with other factors, the endowment insurance spending has a limited function on the urban residents’ spending. Meanwhile this paper refers that the contradiction of demand and supply for consumption, the low security expectation and the low level of pension insurance maybe the principal causes.