Study On The Hidden Risk Of Basic Pension Fund In China Under Aging Population

Our basic pension system is being improved gradually. The current system of basic pension insurance of china is operating according to the decision made by the state council of People’s Republic of china on establishing uniform and basic system of insurance of worker of enterprises in1997,but there are a great deal of difficulties and questions because of the system design and the practical operation:the transitional cost is large, the phenomenon of enterprises escapes pension, the fund management system is not perfect and so on. These problems bring about huge deficit of fund. Furthermore, china’s family planning policy has resulted in lowering the birth rate and the citizen life expectancy increasing since reform and opening up. which increases the proportion of aged population. It is predicted that the elderly population in coming decades will continue to grow rapidly. The problem of population aging has a tremendous impact on the balance of the fund.To overcome crisis of aging of population, our country have carried out the endowment insurance institutional reform, the reform have taken place pay-as-you-go system to partially funded system. However, the pension payment promise formed in pay as you go system begins to exposure; the implicit pension debt has produced. The social security system is the social security system, which plays a very important role in constructing our socialist market economy and stabilizing society. As the material base of the basic pension system, the basic pension fund decides whether basic pension system can be implemented smoothly. Per now, our country pension fund reform encounters un-enough basic pension fund, fund deficit made the processing pension fund reform encounters crisis.In this paper, per author analyzes the pension fund implicit risk and explain the reasons for the pension fund deficit such as no enough channel to promote the pension fund, the pension fund in depth and proposes several countermeasures and suggestions for the pension fund deficit.