Retirement Planning Research In The Perspective Of Financial Planning

With the development of society and rapid growth of economy, the aged tendency of population is becoming even more remarkable. It is reported that, aged population of China is supposed to reach 3800 million in 2040, which is more than the total population of Europe. At present, the ratio of the aged family to the domestic family is 21%, in which the'empty-nest'family as much as 23%. As for the enhancing of lifespan and the grown-up of only-child, the phenomenon of'empty-nest'aged family would become more and more popular.In China ,multiple level endowment insurance system has been primarily established, which composes of 3 administrative level , that is, primary endowment insurance, enterprise annuity and worker individual deposit endowment insurance. However, the main point of primary endowment insurance is to sustain people's basic needs. Besides, the enterprise annuity system has just come into being, which means people can not rely too much on this approach. Even though Chinese have the tradition of bringing up sons to support parents in their old age, due to the one-child policy of Chinese government, the burden comes to be so heavy that the single child cannot bear when he is grown-up. As a result, if one wishes to maintain an ideal life level in his retirement period, it is natural for him to turn to retirement planning for help.The individual financing business of domestic bank is just on the horizon. There are also some cases in that field. But it is rare for the systematic research of retirement planning. Besides, the practical operation also needs further improvement. Based on the points mentioned above, this thesis makes retirement planning as the main research field.The research approach adopted in this thesis is mainly normative analysis and empirical analysis. It would the writer's great honor if this thesis could make any contribution to the development of domestic retirement planning research and also the practical operations.The context is comprised of five parts.Part I makes some key definitions of retirement planning, states the Life-cycle Theory and the Portfolio Theory which lays the theoretical base for this paper.Part II emphasizes the role of retirement planning in China's endowment insurance system, in which introduces the development of China's endowment insurance system and challenges.Part III analyzes the application of retirement planning in three steps: demand and supply analysis of pension, design of investment plan and investment estimation. The first step shows the demand of pension fund and the supply in the perspective of primary endowment insurance and enterprise annuity in China, which contributes to the deficit of supply and demand. The second one illuminates the investment vehicle which is commonly used in retirement planning and illustrates the factors which should be taken into consideration when tailor-making the investment portfolio for the clients to make-up the pension deficit. The third one highlights the principle of Monte Carlo simulation and the simulation steps to lay a foundation for the next empirical part.Part IV is the case study which illustrates the whole process of retirement planning. Monte Carlo simulation is adopted to estimate the risk of the portfolio investment plan.Part V proposes some suggestions for the retirement planning business which combines overseas beneficial experience and the China's national conditions.