Research On The Application Of Entropy Optimization Model In Occupational Pension Investment

Our country is faced with population aging which is more and more severe. Population aging crisis brings heavy pressure to pension payment. With the acceleration of population aging trend and the decline of fundamental pension insurance substitution rate, it is urgent for occupational pension to play more and more obvious supplementary part as the second pillar in pension insurance system. It needs to optimize the investing combination and enhance the investing return of occupational pension fund.In this paper, based on the present situation of occupational pension fund in our country and comparing with the investing trend of foreign occupational pension fund, the mean-variance-entropy model is drawn forth. After being improved, the entropy optimization model is used in the research on investing combinations of occupational pension fund in our country. By gathering and dealing with the datas from year 2003 to year 2007, I calculate the best investing proportions for four investing tools according to three different reference return objects. By analyzing the calculating results, I get the proportion order for the investing tools and give the suggestion about relative proportions of investing tools. In addition, it is discovered that because of the existing investing restrictions in our country, the best investing combinations of occupational pension fund fail to realize under some circumstances, so it is necessary to improve the investing environment in order to relax the restrictions to occupational pension fund.