The Influence Of Delay Retirement To Enterprise Annuity Replacement Rate

With the increasing age population and continually rising of social average wage, the pressure of paying basic endowment insurance fund is increasing. Meanwhile, the insurance replacement rate and the level of security for retired workers in China is gradually reducing. The balance of basic endowment insurance fund payment is related to the sustainable development of old-age security system. Delay retirement is one of the universal problems which every country will face in the world, due to the increasing age population.some countries have adjusted the retirement age especially the developed countries. Some reasons have prompted China to carry out the delay policy, such as the increasing aging society, the supply and demand of the young labor force, and the imbalances of basic endowment insurance fund. The Decision on Major Issues Concerning Comprehensively Deepening Reforms is adopted at the Third Plenary Session of the 18th C PC Central Committee, which clearly put forward that China should analysis the essential national conditions deeply, and raise the retirement age in progressive steps timely. It can see the determine of pushing delay retirement.The topic of this article is to talk about the influence of delay retirement for supplementary pension replacement rate which means the rate between the enterprise annuity after retirement and wage level. It will analysis delay retirement’s influence for enterprise annuity replacement rate under deferent gender and age by establishing an actuarial model. The model make a reasonable enterprise annuity replacement rate in order to put forward advice to raise the retirement age under the whole endowment insurance system.First of all, this thesis introduces corporate pension system in theory by the field of the function and operation mechanism of enterprise annuity. And it puts forward the necessity of implementing delay policy by analyzing four aspects including population structure, average life expectancy, seniority and the current payment situation of endowment insurance fund, etc. At the same time, it use enterprise annuity replacement rate in theory to analysis the impact which four factors have to replacement rate of corporate pension. The four factors are that number of years for premium, average life expectancy, contribution rate of occupational pension and fund yield rateSecondly, it establishes an actuarial model. This study objects is male and female workers in four different ages, considering the short time on the implementation of enterprise annuity and the big gap between male and female worker enterprise annuity replacement rate.Finally, it put forward some proposal to the implement of delay retirement policy and the development of enterprise annuity system respectively. Our country should raise the retirement age in progressive and smoothly steps timely, in order to adapt to the social and economic development in our country. What’s more, China should accelerate the construction of enterprise annuity system, adjust male and female worker’s contribution rate to reduce replacement rate gap caused by gender differences, and improve enterprise annuity preferential tax policies, so as to promote the further development of enterprise annuity.