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Research On Delayed Retirement Policy Based On The Perspective Of Personal Pension Wealth And Utility

Posted on:2018-06-18Degree:MasterType:Thesis
Country:ChinaCandidate:R X CaoFull Text:PDF
GTID:2359330512487959Subject:World economy
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With the development of economy and society in China,the problem of aging population is becoming more and more serious,and the scale of pension expenditure is expanding,thus the sustainability of endowment insurance fund faces great challenge.China’s current retirement age was set up in the 1950s,the retirement age is apparently unable to adapt to the current demographic structure.Based on above reasons,delaying retirement age,which is an important measure to improve pension insurance system in our country,has been gradually put on the agenda.However,the majority of people are opposed to the delayed retirement policy,not only because delayed retirement can reduce personal leisure,but also it will cause a reduction in personal wealth.Based on this,aiming at the impact of delayed retirement policy,this paper explores the incentive effect of pension system on individuals,not only simulates the changes in personal pension wealth from the perspective of wealth,but also analyses the effect of delayed retirement policy on life cycle utility from the perspective of utility.With the help of numerical simulation,this paper quantitatively analyses the impact of policy implementation on individual welfare,so as to provide reasonable suggestions for the delayed retirement policy.In this paper,domestic and foreign postponed retirement policy are first reviewed to find the theoretical significance of the research based on personal wealth and utility.And then,the development of China’s retirement system is presented in order to find problems of current retirement system.Based on this,the author finds that a reform of retirement system is needed to ensure the sustainability of pension funds.However,the adjustment of retirement age will affect the level of individual welfare.In order to explore the incentive function of the endowment insurance system to individuals,this research uses pension wealth model and life cycle model to stimulate the impact of policy on individual’s wealth,and the sensitivity analysis is made on the key parameters of pension under different situations to explain the impact of various factors on individual welfare.Through the above analysis,it can be concluded that the wage growth rate,investment return rate,life expectancy,income level and pension replacement rate have positive effects on pension wealth.Additionally,pension growth rate,discount rate and leisure preference have negative effects on pension wealth;from the perspective of utility,65 is a more appropriate retirement age,and the optimal retirement age calculated by the pension wealth model is earlier than that in the utility model because the utility model includes the decision of leisure.Finally,the paper puts forward some policy recommendations.The government should phase out mandatory age for retirement by establishing flexible pension system,and make supplementary flexible retirement provisions according to the difference between the industry and the region.In addition,the government should improve the dynamic adjustment mechanism of pension accounting system and pay close attention to the major factors,such as pension replacement rate and personal income level.
Keywords/Search Tags:pension wealth, life cycle utility, delayed retirement
PDF Full Text Request
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