The Impact Of Background Risk On China Household Pension Planning

The social phenomenon of aging in a country or region represents the dynamic trend of the increasing proportion of the aged population in the total population in the country or region.According to the General Report of the National Strategic Research on Population Aging,China's population aging process includes four stages.There are as follows: fast aging,rapid aging,deep aging and severe aging.Among them,1999-2022 is a period of fast aging.In 1999,China's population over 60 years old accounted for 10.3%,indicating that China had entered an aging society.By the end of 2017,the proportion of people over 60 years of age in China was 17.3%,an increase of 0.6% over the same period last year.At the same time,the birth rate was 12.4‰,a decrease of 0.6‰ over the same period last year,and the proportion of the second children in the new-born population was more than the first child.Therefore,since 1999,China's population has been aging more and more.Although the problem of population aging is mainly due to the change of population age structure,it will bring different degrees of impact in many areas of society,including economy,culture and ethic.On the macro level,under the background of population aging,the government pays more attention to social security and other livelihood issues,and the state financial subsidy in basic social pension insurance funds is also increasing.Since 2013,the state has promulgated 13 th five-year plan for pension and nearly 300 old-age-related policies to improve the old-age policy system and actively respond to the problem of population aging.From the perspective of household,the continuous progress of population aging has led many households to face the problems of "getting old before getting rich" and "getting old before getting ready",which further aggravates the pressure of household pension.According to the data of China Household Finance Survey,only 36.6% of the households had pension plans;47.1% of the households with pension plans would choose to save or invest for the aged;55.4% of the households would choose social security for the aged;about 30% of the households would choose the way of getting support from their children.Commercial insurance accounts for less than 10%.Therefore,judging from the formulation of household pension plans and the choice of pension modes,Chinese households have weak awareness of pension planning and insufficient diversity of pension modes,which to some extent reflects the low degree of pension security of Chinese households.In order to enhance the awareness and ability of household pension planning in China and properly solve the problem of household pension security,this paper uses micro-survey data,through theoretical analysis and empirical research,mainly examines the background risk including labor income risk,the investment of house property or commercial assets,which are two kinds of factors affecting the formulation of pension plan and the selection of four pension modes in China household pension planning.At the same time,after the comparative analysis of the typical characteristics of the four pension modes and the detailed elaboration of the necessity of choosing commercial insurance for pension,this paper continues to examine the impact of background risk on the purchase behavior of life insurance.After the conclusion of the study,this paper provides feasible suggestions from the perspective of the government,financial institutions,especially commercial insurance companies and households,in order to enhance the awareness and ability of household pension planning in China and give full play to the important role of life insurance in pension security and risk diversification.This paper is divided into five chapters.The first chapter is the introduction.This chapter elaborates the background,purpose and significance of the research on household pension planning and life insurance purchasing behavior in China,and reviews the literature on household pension planning,life insurance purchasing and background risk at home and abroad.Then,this chapter summarizes the research contents,research methods and technical routes of household pension planning and insurance purchase,and points out the innovation and shortcomings of this paper.The second chapter is the theoretical basis.This chapter defines the important concepts of household pension planning,life insurance and background risk,and elaborates and analyses the relevant theories,which lays a solid theoretical foundation for the study of this article.The third chapter is the analysis of the current situation and influencing factors of household pension planning in China.This chapter uses micro-survey data to analyze the formulation of China household pension plan and the choice of pension mode.After explaining the necessity of Chinese households choosing commercial insurance for the aged,this chapter also makes an analysis of the status quo of the purchase of life insurance and the trust in commercial insurance.Finally,this chapter makes a statistical analysis of the impact of background risk,variables reflecting household financiers and household characteristics on China household pension planning and life insurance purchasing behavior.The fourth chapter is an empirical analysis of the impact of background risk on China household pension planning behavior.This chapter introduces the meaning of variables and measurement indicators,and makes descriptive statistics and correlation test for variables.Then,this paper establishes Probit model to empirically study the impact of labor income risk in background risk and the investment of house property or commercial assets on the research object,and tests the robustness of the empirical results.The fifth chapter is the conclusion and policy recommendations.This chapter summarizes the main research conclusions,and puts forward policy recommendations from the perspective of the government,commercial insurance companies,other financial institutions and households,in order to realize the diversification of household pension and improve the level of household pension security.The innovation of this paper is mainly embodied in the following two points.Firstly,the research object is systematic and comprehensive,and the research has a strong reality.In order to comprehensively investigate the behavior of China household pension planning,in this paper it includes two aspects: the formulation of the household pension plan and the choice of the pension mode,and divides the pension mode into four types: saving or investment,child support,social security and commercial insurance.After a comparative analysis of the four pension modes and a detailed elaboration of the necessity of choosing the commercial insurance,this paper further studies the purchase behavior of life insurance.Therefore,a systematic and comprehensive study on the behavior of household pension planning in China will help to improve the level of household pension security.Secondly,the research perspective is novel.This paper mainly studies the impact of background risk including labor income risk and real estate or commercial asset investment on household pension planning and life insurance purchasing behavior in China.Empirical results show that the labor income risk faced by household financiers has a significant positive impact on the household pension planning and insurance purchase,and the proportion of real estate to the total family assets has a significant negative impact on the household pension planning and insurance purchase.Therefore,from the perspective of background risk,this paper studies the influencing factors of household pension planning and insurance purchase,which further enriches the research content of this field.