The Actuarial Analysis Of Personal Account Pension Fund Gap Of China

In response to the pressure of the aging population and other factors, the pay-a, in nineties the twentieth century, the reform of pension system has been carried in China, and the new pension insurance system has been established, which is the combining of the social fund and personal accounts. In the process of the system transforming, because of transition costs, mixed accounts management and the empty personal account, the gap of pension funds is increasing. This article mainly studies the factors on personal account fund gap form an actuarial point.Firstly, this article analysis's the cause reason of person account fund gap, and points out the main impacting factors, such as: employment age, retirement age, wage growth rate, interest rate, inflation rate, contribution rate, replacement rate, etc. Secondly, based on the analysis of the pension insurance system and the actuarial theories, this article gives the calculation formula of personal account fund gap. Finally, according to polices and basic states at present in China, it sets the parameters of the gap formula, and use the EXCEL software to simulation actuarial analysis. Through the sensitivity analysis of these factors, we can get different degree that these factors affect on the gap. As one of controllable parameters, the impact that retirement age on the gap is the greatest. Raising retirement age can reduce the gap most. Contribution rates and interest rates are all influential on the gap. Lowering contribution rates and raising interest rates are all beneficial to the gap reduction. But wage growth rate and the average life expectancy are not controllable parameters, so reducing the gap can not start from these elements. Form analysis above we can get that: to reduce the personal account fund gap, it can be taken such measures as: postponing retirement age, reforming interest rates system, increasing the base pay improving pension fund investment returns, and reforming the releasing method of personal account pension fund.