The Impact Of Population Aging On Savings In China

Since the reform and opening up,China’s savings rate has been among the best in the world,even higher than that of developed countries,and the growth rate of savings has far exceeded the economic rate,which is the object of special attention of foreign scholars.Saving is not only closely related to people’s life,but also related to Chinese future economic development.It is very necessary to study the change of Chinese savings rate and its influencing factors.The population aging is also a hot topic in today’s society,how to actively respond to the population aging has been the every countries’ problem.The age structure of the population will affect the consumption and investment behaviors of residents and the society,and consumption and investment are the key factors affecting savings.Therefore,this paper mainly explores the impact of population aging on savings.On the basis of research by scholars at home and abroad,establish a three-phase OLG model.This model introduces the factors of population aging and analyzes the influence mechanism of population aging on private savings rate and social savings rate.For population aging,we look at the impact on savings in two aspects: the old-age dependency ratio,which represents the size of the elderly population,and life expectancy.To empirically test the model,we first used the fixed effect regression model of 30 provincial panel data except Xizang province from 2002 to 2018 to test the impact of population aging on the household savings rate,and then used the time series data from 1992 to 2018 to test the impact of population aging on the social savings rate.Theoretical model analysis shows that the elderly dependency ratio will have negative impact on residents’ savings and social,the life expectancy will have positive effect to residents and social savings,the empirical results also confirmed the results of our theoretical analysis,the elderly dependency ratio rise makes residents savings rate and social savings rate declined,and the extension of life expectancy will make residents and social savings rate to rise.