The Impact Of China’s Endowment Insurance On Household Savings

Compared with Western developed countries,China is a country with a low consumption rate and a high savings rate.As we all know,an important component of China’s total social demand is consumer demand.Low consumption rate means insufficient consumer demand and lack of motivation for economic growth.Therefore,how to expand domestic demand to promote national economic growth has become an urgent problem for China.In the long-term mechanism of seeking to expand consumer demand,social pension insurance,which balances the life cycle welfare level,will affect residents’ consumption and savings decisions.Therefore,studying the impact of China’s pension insurance on household savings is crucial to promoting China’s economic development.On the basis of summarizing and summarizing the previous articles,this paper first introduces the main theories about the impact of pension insurance on residents’ savings.These theories include Keynes’ s absolute income hypothesis and money demand theory,Modigliani’s traditional life cycle model.,Feldstein’s extended life cycle model,Taylor’s behavioral cycle model and Barrow’s infinite altruistic model,these theories provide a theoretical basis for the establishment of this model.Next,this paper makes a qualitative analysis of the relationship betweenpension insurance and savings,and briefly introduces the development history and characteristics of China’s pension insurance.It explains the impact of pension insurance on residents’ savings from the aspects of“extrusion effect” and “crowding effect”.Mechanisms.Thirdly,based on the life cycle theory framework,this paper constructs a measurement model by transforming the consumption function of Modigliani and Anton.The child dependency ratio,the old-age dependency ratio,the pension burden economic burden rate and the regional per capita GDP are selected as explanatory variables,and the household savings rate is the explanatory variable.The innovation of the article is to analyze the data of each region after analyzing the provincial panel data.After regression analysis of the panel data for 2002-2016,we conclude that:The impact of the pension burden on the savings is negative,that is,the pension insurance will squeeze out the savings to a certain extent;the old-age dependency ratio has a positive impact on savings;the child dependency ratio has a negative correlation with the savings;the impact of regional GDP on savings For positive numbers,regional GDP has a positive correlation with savings.In view of the conclusion that pension insurance squeezes out savings,this paper puts forward some opinions to improve the pension insurance system: such as raising the pension payment level;expanding the investment channel of the pension fund;improving the managementlevel of the social security fund;Coverage of insurance;establishment of flexible pension insurance mechanisms,etc.