Research On The Influence Of Intergenerational Transfer And Commercial Endowment Insurance On The Income Level Of The Elderly

The 20 National Congress Report pointed out that the social security system should be improved.We will improve a multi-tiered social security system that covers all the people,coordinates urban and rural areas,is fair and unified,is safe and standardized,and is sustainable.We will improve the national pooling system for basic old-age insurance and develop a multi-tiered and multi-pillar old-age insurance system.The Opinions on Strengthening the Work for the Aged in the New Era issued by the Central Committee of the Communist Party of China and The State Council pointed out that we should improve the multi-level pension security system,vigorously develop the enterprise(occupational)annuity,promote and standardize the development of the third pillar pension insurance,and also pointed out that we should pay attention to the role of family pension and individual self-pension.A new situation has emerged in which multiple subjects share responsibilities,the risks of aging are addressed in steps,and the cause of aging involves everyone.Intergenerational transfer and payment of commercial endowment insurance is an important source of income for Chinese residents in the old age,but it has not been fully paid attention to under the current situation that the construction of multi-level social security system is not mature.China has the tradition of family mutual assistance,and the economic function of family endowment is mainly realized through the transfer of wealth between different generations,but its play is limited by the increasing burden of family aging and the reduction of population size since the implementation of family planning.However,the commercial endowment insurance purchased by individuals is one of the important tools of self-endowment,but it is facing the dilemma of serious underdevelopment at present.Combined with China’s national conditions and international experience,this paper regards the intergenerational transfer and commercial endowment insurance as the actual connection of family endowment,self-endowment and multi-level endowment security system,and discusses the leading role of the opinions on aging work in the new era in the practical level.By constructing the overlapping generation model,this paper discusses the relationship between risk assets,commercial endowment insurance,children’s annuity insurance and education investment,constructs the income level equation of the elderly,quantizes the influence of commercial endowment insurance and intergenerational transfer on individual income level of the elderly,and portrays the traditional cultural belief of family mutual assistance.This paper probes into the significance of individual selfsupporting and family supporting in multi-level social supporting system.At the same time,by studying the influence of changes in institutional environment,family preference and supply side on the purchase of commercial endowment insurance and the income level of the elderly,this paper identifies the key factors of society,individuals and institutions that affect the decision-making of family endowment consumption.This paper finds that commercial endowment insurance and risk assets,children’s annuity insurance purchase and education investment all show a reverse trend.Intergenerational transfer and commercial endowment insurance purchase both contribute to the improvement of the income level of the elderly,but the increase of intergenerational transfer ratio will lead to the decrease of commercial endowment insurance purchase,thus reducing the income level of the elderly.The performance of commercial endowment insurance in increasing the income of the aged is better than that of intergenerational transfer.From the perspective of institutional environment changes,the reduction of the payment replacement rate benchmark of the basic endowment insurance pooling account has the most significant promoting effect on the income of the elderly.From the perspective of family preference,the decrease of altruistic motivation can promote the increase of income level in old age.From the supply side,the effect of lowering the fee of commercial endowment insurance on the income level of the elderly is the most obvious.Based on the research results,the following policy recommendations are proposed: attach importance to the non economic function of intergenerational support and appropriately share the economic burden of family elderly care;improve human capital accumulation expectations and promote intergenerational consumption balance;diversified investment product structure to increase residents’ income sources;reasonably plan the social pension burden and promote the development of commercial pension insurance.