Financial Literacy And Decision Optimization Of Pension Financial Asset Allocation

With the deepening of aging,the pressure of social basic endowment insurance has been increasing,and the fund has a gap in revenue and expenditure year after year,resulting in the problem of system sustainability.In 2022,the State issued the "Implementation Measures for Individual Pension",and China formally established the third pillar pension system of full accumulation by individuals.However,due to the low financial literacy of Chinese residents and the lack of objective financial knowledge and sense of pension responsibility,the development of individual pension system is in a dilemma.So how does residents’ financial literacy affect residents’ pension asset allocation behavior,and then affect the development of pension security system?Therefore,the main content of this paper is to explore the impact of financial literacy on China’s pension asset allocation behavior and the internal possible impact mechanism based on the survey data.The study found that financial literacy can optimize the decision-making of personal pension asset allocation through three ways: improving residents’ pension expectations,reducing the decision-making cost of asset allocation and improving risk attitude.The first chapter introduces the research background of this paper,expounds the purpose and significance of the research,research content and methods.The innovation and deficiency of the research and the literature review.The second chapter defines the concepts related to financial literacy and pension asset allocation.The third chapter,based on the previous literature analysis and theoretical basis,comprehensively analyzes the mechanism of financial literacy affecting residents’ pension financial asset allocation behavior and puts forward assumptions,and proposes that financial literacy can promote the optimization of individual pension asset allocation decisions in three ways.Chapter IV carries out data description and statistical analysis on CHFS(2019)data,describes and analyzes the residents’ subjective and objective financial literacy level and the current situation of pension asset allocation,and finds that the financial literacy level of Chinese residents is generally low,and the pension asset allocation is relatively single.In chapter V,based on the previous assumptions,the model is built and empirical analysis is carried out to verify that both subjective and objective financial literacy can promote the optimization of pension financial asset allocation,and then the heterogeneity analysis,endogenous test and robustness test are carried out.Chapter VI,based on the above research results,combined with some practices and experiences of foreign financial literacy and pension financial asset allocation,compares and analyzes how to improve China’s financial literacy and optimize the pension financial asset allocation.Chapter VII,puts forward targeted suggestions on how to improve the level of financial literacy and improve the development of the pension security system.The innovation points of this paper are mainly three points: First,on the basis of some foreign studies,this paper explores the impact mechanism of financial literacy and the allocation of pension assets according to the characteristics of China,and finds that financial literacy can improve residents’ pension expectations Three ways to optimize individual pension asset allocation decisions are to reduce the decision-making cost of asset allocation and improve risk attitude to achieve a better asset allocation portfolio,expanding the research conclusions.Second,based on a new analytical perspective,this paper analyzes the pension asset allocation decision from the perspective of personal financial literacy,and finds that not only the product supply and pension system at the macro level will affect the pension asset allocation decision of individuals,but also the impact of financial literacy at the individual level is very important.Third,this paper tries to subdivide and explore financial literacy,which not only enriches research results in relevant fields,but also highlights the importance of financial education for the elderly,It provides a new idea for how to improve financial literacy and optimize the allocation of pension financial assets.