Research On The Sustainability Of Financial Affordability Of Pension System Insurance In China

As a basic public service, the government has the responsibility to maintain the normal operation of the social pension insurance system, which related to people’s well-being and maintaining social stability. With the rapid development of the global population, every country is under the pressure from the balance of payments, which is the biggest problem facing the world. This is a problem that has been widely and deeply concerned by the society.In recent years, when information about pension deficit appeared frequently in the public, People’s panic naturally goes:if in the future really appear pension payment crisis, whether the current payment is able to be a good solution to the retirement pension problem? Because of the lack of confidence in the pension insurance system, people are likely to choose to withdraw from the pension insurance, which can only continue to increase the risk of the pension insurance fund balance of payments, and thus into a vicious circle. In fact, when the pension insurance fund is difficult to continue, financial capital is usually the first capital source of supply. From the date of the establishment of the pension insurance system, the national finance has been playing an important role, although the pension system itself has a certain income, however, it is an important content of public finance to give the necessary financial support for the government. In a certain sense, the sustainability of the pension insurance system depends on the sustainability of the financial burden.China is in a critical period of social transformation, population structure change, etc., the operation of the pension insurance system is the common concern of scholars at home and abroad. Although the overall situation of the current pension insurance fund is stable, according to the budget of the national social insurance fund in 2015, the fund will be a deficit without the government’s allowance, what’s more, comparing the execution of the budget in last few years, the deficit is becoming larger. Take the basic urban enterprise pension insurance for example, excluding financial subsidies, in 2015 pension insurance fund revenue deduct expenditure and the deficit is 3024.87 billion yuan, which is significantly bigger than 1563 billion yuan of 2014, and in 2012, this indicator is also positive. That is to say, the reason why the basic pension insurance system is working well is because that the government is taking the financial responsibility for the system, and constantly providing financial allowance for the system. With the larger pressure of balancing budget of pension insurance fund, the government is also facing more and more financial burden. From the evolution process of the social pension insurance system in our country, although the government constantly adjust the function of the pension insurance system, and the transition from the initial financial sweep to the state, enterprises (units) and individuals share together is achieved. One aspect wanes, the other waxes, the financial subsidies to the basic pension insurance in China are still rising year by year. However, for the government to play the responsibility of minimum-guarantee, this growing trend is not a normal phenomenon. Continuously for a long time, if beyond the financial burden ability, it not only will drag on the economy, may also destroy the pension insurance system.To sum up, the risks of the financial burden of the pension insurance in China are mainly:First, with the slowing down of Chinese economy, the financial revenue growth is slowing down consequently. Second, the trend of aging population will make the expenses of pension insurance more than payment, which causes many areas to suffer the payment crisis. According to estimates, the current proportion of elderly population over the age of 60 has reached 15.5%, it will reach 17.7% in 2020, and 31.5% in 2050. Third, the pension insurance system was not designed to reduce the financial burden. Fourth, the implicit debt burden increased pressure. These risks ultimately point to a critical issue, that is, whether the financial sustainability of the pension fund can continue to make up the gap, which is the core issue of this paper. If the financial affordability of the pension insurance is sustainable, it can be considered in the long term and try to solve it. If not, it is a top priority to take effective measures to deal with.Through the comparative analysis of the different financial responsibility of urban enterprise pension insurance, urban and rural residents pension insurance and institution pension insurance in the fund raising and pension payment, it is found that the government’s financial responsibility and management responsibilities have certain differences. On this basis, through the methods of the combination of qualitative and quantitative analysis, normative analysis and empirical analysis, forecast the development trend of urban enterprise pension insurance, urban and rural residents pension insurance and institution pension insurance from 2015 to 2050. The conclusions are:in the forecast period, the financial subsidies of the basic pension insurance in China accounted for about 6%of the proportion of financial revenue. The government takes about 6% annually to make up for the basic pension insurance system, which accords with the current development of China’s pension insurance system. In the same period, the financial expenditure growth of the basic pension insurance still has a certain space, but still need to guard against the impact of various potential risks in the accumulation of pension funds. In order to make the financial burden of the pension insurance sustainable, we must not only continue to improve the pension insurance system, but also to take measures to further adjust the structure of fiscal expenditure, improve the functions of the multi-level pension insurance pillars, multi-channel financing of pension insurance funds as well as improve the pension insurance fund budget.