Analysis And Evaluation Of The Security Level Of Basic Old-Age Insurance System For Urban Workers In China

A well-functioning social security system is essential for sustained growth and for people-centered development in the context of China's rapidly aging society. To improve the basic old-age insurance system, we should enhance the old-age security level, guarantee the basic living of the old, this should be the fundamental starting point and foothold. As an important index to measure the level of security-pension replacement rate will not only affect the living standard of retired workers, efficient and effective operation of the enterprise production and management, staff loyalty to the enterprise and the worker's consumer expectations, but also influence workers' contribution cost burden, the transfer payment between generations and between people with high income and low income, as well as the operation of the old-age insurance system, the national savings, social welfare, social capital formation, labor output. The government is actively pursuing measures to further develop and improve the social security system for all of its citizens. It undertook a major reform of the urban enterprise pension system in1997, which was known as The Decision of Constructing Basic Old-Age Insurance System for the Employees, thus the system of combining the defined benefit pay-as-you-go social pooling and the defined contribution investment-based individual account has been established. After decades of development, the pension system has broad coverage, retirees' basic living standard has been raised, and it has made important contributions to maintain social harmony and stability. But due to the imperfection of system operation mechanism, the government under-investment, unreasonable benefit formula, and unrestricted system implementation, the healthy development of the basic old-age insurance system is also facing new contradictions and problems.The ultimate goal of the basic old-age insurance is providing enough pension for the old, so this dissertation focuses on the old-age security level as the hitting-point, takes the social average wage replacement rate as measurement index, using comparative study, quantitative and qualitative analysis, empirical research and mathematical calculation, econometrics and other analysis methods and means to study the current situation, development trend, intrinsic mechanism, influence factors of social average wage replacement rate, in order to reveal the impact of benefit formula, retirement age, contribution level, individual account earnings on pension replacement rate, so as to emphasize the extreme importance of social average wage replacement rate and provide beneficial reference and enlightenment for pension insurance system reform of China's rural, government institution and public sector units.The first chapter is introduction, elaborates background of this subject and research significance, literature review, research methods and framework.The second chapter is analysis and evaluation of China's urban old-age insurance system and its security level. Combined with the calculation formulas of different groups of retirees, pension replacement rate and its variation mechanism of different groups of retirees are further analyzed. Compare the old and new system's influence on the security level, focusing on the analysis of the current system running effect. Then analyze the gap of pension replacement rate under dual-track approach and the existing problems. Through investigating several major financial operation parameters, we make synthetic analysis of regional differences about pension replacement rate. Finally, thoroughly analyze the main reasons of pension replacement rate declining. The third chapter to the sixth chapter makes quantitative analysis of the relationship between the main parameters of basic old-age insurance system and pension replacement rate.The third chapter analyzes and evaluates the relationship between contribution level and pension replacement rate. Firstly construct the social average wage replacement rate model according to the benefit calculation method of the current system, focus on the impact of different income levels and contribution levels on pension replacement rate. Then conduct quantitative calculation using mathematical software Matlab to work out social average wage replacement rate of basic pension, individual account pension of male workers, female workers and female cadres in China under different contribution levels, on this basis, make comparative analysis of the replacement rate level difference among different income groups.The fourth chapter analyzes and evaluates the relationship between individual account fund rate of return and pension replacement rate. Firstly analyze the status quo and existing problems of individual account replacement rate under current institutional arrangement. Then respectively calculate the correlation between pension replacement rate and individual account fund rate of return under the present system regulations and the actual remaining life.The fifth chapter analyzes and evaluates the relationship between contribution years and pension replacement rate. Firstly carry out in-depth study on the influence of contribution years on financial sustainability of social pooling, basic pension and individual account pension. Then discuss the impact of contribution years on sustainable development of the basic old-age insurance system.The sixth chapter analyzes and evaluates the relationship between retirement age and pension replacement rate. Firstly analyze retirement age policy of urban workers, then under the hypothesis of different wage growth and rate of return on pension fund, and under different conditions such as delaying retirement age and postponing getting pension, the individual account pension replacement rates of male workers, women cadres, and female workers are simulated. On this basis, discuss the influence of retirement age on sustainable development of the basic old-age insurance system.Chapter7makes comprehensive evaluation of the security level of the basic old-age insurance system for urban workers. Firstly, the old-age security levels around the world are analyzed and compared, then investigate the problems existing in the security level and system framework of China's basic old-age insurance system.Chapter8is the policy options for China's old-age insurance system reform, put forward paths of reform and policy suggestions to improve the basic old-age insurance system, and enhance the level of old-age security. Through the full text analytic demonstration, we should accurately grasp the essence of the problem and highlight security level-social average wage replacement rate as the key point to improve the basic old-age insurance system, and to build the long-term mechanism of healthy development.