A Research On Population Aging And Pension System Reform

As the arrival of the era of population aging globally, population aging have beenhaving a complicated and profound impacts on all aspects of economic and social lifedeeply and, no doubt, it has grasped goverments’ great attention in recent years.Population aging means that more and more resources will be allocated to the elders,labour shortage, increasing wage and more serious fiscal burden. All of which willhave a significant impact for economic development. Currently, population aging hasfour characteristics: wilder range, faster speed, deeper extent, more serious poverty,obvious differences between city and country and the social exclusion for the elders.Challenges caused by population are reflected in labour shortage, probable slowdownin economic growth as well as in the pension system and medical system. As far asChina is concerned, the challenges will even be great due to the low level of economicdevelopment, institutions inefficiency, large population base and very limitedfinancial income.There is no doubt that the impact of population aging on pension system isfar-reaching. As an important institutional framework to build a social safety net,pension system has been played a sacred mission to provide protection for the elders.From experiences of reforms in pension system all over the world, the basic trend ofreform is a re-allocating course in elders’ pension liability between government andmarket force. The goal is to establish a three-dimension framework gradually inwhich the governments, businesses and individuals can supplement effectively eachother. In order to ensure its sustainability, the new system should be able to have rolesof risk diversification, defusing crisis, and in some degree it should enhanced theincentives and attractions as well as should achieved a perfect combination betweenself-guarantee and public-guarantee.In Chinese, our pension system always playing an important role in payingpensions, and achieved some accomplishments, of course some challenges, such as low management level, regional imbalances and personal accounts idling etc. To solvethese problems, the author proposes some policy recommendations.