Study On China Enterprise Pension Substitution Rate

Pension substitution rate is the critical point of the whole social endowment insurance system, which is in highly correlation with economic growth, fiscal revenues and social insurance system set. The population aging degree continues to deepen. The population life expectancy has been increasing. Although China has been improving employee pensions, the substitution rate continues to fall and has fallen below the international warning line, which will greatly affect the ability of responding the risk of population aging and the quality of workers’ life after retirement. Compared with foreign countries, Chinese pension substitution rate, pillar structure and redistribution functions have different characteristics, mainly due to that the multi-layered structures have not been established and improved and that the pensions redistribution function is weak, and it will put the persistence and fairness of old age security to test.The research background and significance is detailed described firstly. Using appropriate research methods, theories related were carefully combed. Previous research literatures are more concentrated on the overall rate, while researches on the employees’ and regional differences are few. Thus perspective on the employees’ pension substitution rate is chosen, factors that should be considered are defined. With a reasonable increase in financial investment, inter-institutional coordination among different crowd is formed. During the research, three major issues are found, that is the employee pension substitution rate at present is low, personal pension substitution rate is to be raised, regional differences are big. In response to that, a detailed analysis and comparison with foreign countries are carried out. Issues that should pay attention to and experience in the development of the enterprise employee pension substitution rate are summed up. To better protect the life quality of older people and to achieve sustainable development of endowment insurance, countermeasures are finally being planned respectively from building automatic pension adjustment mechanisms, determining a reasonable proportion of the pension substitution rate, improving pension management and adjustment of retirement age.