Research On Personal Accounts Annutitization Of Pension System In China

Currently, under the situation that longevity risks of population graduallyincreasing, bringing personal pension accounts into the social pension system andreallocating the responsibilities to provide for the aged between the individuals andthe government indicate a new stage of the reform of pension system in our country.However, there are many inevitable problems occurred in the process ofimplementing the personal pension accounts, especially in the payment modes of theaccounts. With the continuous extension of life expectancy, unreasonable policies inthe payment will lead to a heavier burden for the government and the insecurity ofretirement livings. In this paper, we analysis the situation of the development ofpersonal pension accounts and the formation, the management modes, of longevityrisks, compare the payment modes with that in other countries, discuss the difficulties,restraints and feasibility of annuitization of personal pension accounts, and theninvestigate the construction of the relationship between personal pension accountsand annuity insurances. By data analyzing and comparing the current policy ofpension system with the annuitization of personal pension accounts, we proved thatthere are advantages in coping with the longevity risk for the annuitization of personalpension accounts. Finally, the paper presents some suggestions for the annuitization ofpersonal pension accounts and indicates that the payments of enterprise annuitiesshould be diversiform.