The Impact Of Population Aging On Household Financial Asset Allocation

Population aging is one of the great challenges faced by the world today. China has entered the aging stage in 2000, and the development is very rapid. China’s aging population accounts for more than 20% of the global aging population, and such a severe test has a huge impact on China’s economic development. The problem of population aging is bound to affect Chinese household’s population structure,economic situation, and also the household financial asset allocation. In this background, based on the current situation of China’s current population aging and household financial asset allocation as foothold, through the method of combining theoretical and empirical analysis, the paper presents an analysis on the specific effects of population aging on household financial asset allocation.Firstly, relative theories of population aging and household financial asset allocation were summarized. Then, through methods, the relationship between them was analyzed theoretical. Next, combining with China’s current macro data, the basic situation of China’s population aging and household financial asset allocation was introduced. On one hand, the current problems of China’s population aging were analyzed. On the other hand, the basic structure of China’s household financial asset allocation was analyzed too in this part. In the final and the core part of this paper,2011 National Baseline Survey and 2013 Tracking Survey were selected as research samples from CHARLS. The micro data was adopted, and the Tobit model and logistic model were established to analyze the influencing factors of Chinese household financial allocation choice, especially the influence of household structure changes reflected by the dependency ratio on household financial asset allocation.Finally, it comes to conclusions: The population aging has a significant impact on the household financial asset allocation. With the increase of the degree of aging, the total amount of household financial assets allocation increases correspondingly, and families are more inclined to choose the way of savings and non-cash holdings as regards monetary assets allocation. Senior people with certain wealth accumulation have the willingness to diversify investment risks through assets allocation. Families with low children’s dependency ratio of population have an appetite for lower risks in financial asset allocation. Families with pension have a greater risk tolerance.Families with multi-children have a higher risk aversion. According to the empirical results, the paper gives some policy recommendations to deal with population agingand household financial asset allocation in the end: improve the pension system;create good household investment conditions; develop multi-level investment channels; expand financial services; combine innovation and practice; step up efforts to develop aging financial industry.