Optimal Setting Of Retirement Age Based On The Sustainability Of Pension System

In recent years, with the continuous development of social economy and culture,China’s population structure has been changed and the extent of aging population has beendeepen, as a result, aging population will sharply increase in the next30years. Under thecircumstances of population aging and people’s life expectancy’s rising, the social pensionfund balance of payments face huge challenges in all countries. As the growing problem ofempty account and the increasing of pension’s total expenditure, delaying retirement hasbeen the focus. In this condition, our government has put “delaying retirement age” on theagenda, at the same time the third Plenary Session of the18thCentral Committee of theCommunist’s communique points we need to build a more fair and sustainable socialsecurity system and research gradual retirement age’s policy. In short, the issue thatdelaying retirement age has become inevitable, therefore how to determine the mostoptimal retirement age and implement the relevant policy effectively has become animportant subject as well as in the government and academica.Based on the sustainability of endowment insurance system, this paper firstly makesuse of actuarial theory to build individual lifetime contribution and receiving pension’smodel considering payment rate, receiving rate, contribution age, wage growth rate and soon. The condition that one’s contribution balances to its receiving, this paper constructs themodel of the most optimal retirement age. In addition, the author calculates that retirementage for all kinds of trades. Anyway, this paper can provide guidance for the socialendowment insurance system reform. This article is divided into six parts:The first chapter is for introduction, details the background and significance of thepaper, and observes domestic and international researches about relevant issues, thenillustrates the research objects, methods, innovation and the problems to be solved.The second chapter is about basis of the social endowment insurance system, showssome concepts and regulations on the endowment insurance system, and observes thecause of income gap of pension in China. The third chapter is for model building which is delaying the retirement age tobalance payments of public pension fund, mainly including AR population predictionmodel and income and expenditure model of public pension fund’s co-ordinate account.The third chapter is for model building which includes two parts, individualcontribution and receiving, mainly based on personal perspective. This part constructspension payment and income models in one’s lifetime, so we can analyze the endowmentinsurance system in the whole world. As a matter of fact, if we assure pension contributioncan exceed its receiving for one person in life, balance expenditure with income forpension can be guaranteed.The forth chapter is for model building which is the most optimal retirement age tobalance payments of public pension fund and calculating the age all kinds of industries.Besides, the influence has been analyzed on retirement age, and then took the empiricalanalysis using Statistical Yearbook in2012.The fifth chapter is due to the retirement age system’s design of balance of pensionpayments. Firstly, we suggest putting forward a plan for increasing mandatory retirementage, and then, encouraging to establish payment policy for incentive compatibility. At last,this part proposes to delay retirement elasticity in order to adapt social developmentThe sixth chapter is to make conclusions. This part summaries the paper’s mainconclusions.