The Effects Of Delaying Retirement On Personal Pension Accounts

With the aging trend and approximation, pension system poses a seriouschallenge. Based on the successful experience of foreign countries, the delayingretirement age is the countermeasures to become alleviate the aging population andreducing pension payments pressures. Thus, it is the trend of endowment insurancereform, but scholars have always held a different view of delaying retirement.The study is based on the research background to delaying retirement age and theperspective pension replacement rate. By quantifying the rights and obligations ofindividual workers pension insurance, the article analyze of the impact of the delayingretirement age for pension personal accounts. On the basis of building a model tostudy the assumptions and parameters determined on the design and conduct acomprehensive comparison of delay retirement. On the basis of building a model, theassumptions and determined parameters, the article designs and conducts acomprehensive comparison of delaying retirement age in order to promote theimplementation of relevant policies suggestions.The first part of this paper is the introduction, background, significance,framework and methods. The second part of this article is to review the theory andliterature, discusses the necessity of delay retirement based on the theory of life-cycle and equity and the basic concepts of delaying retirement age, individual pensionaccount and the pension replacement rate, etc. This article relates to the definition ofthe concept were also on the relevant literature of the sort. The third part is about theactuarial model of personal pension account and the analysis of influence factors,based on the sort of personal accounts pension system on personal accounts pensionactuarial models, focusing on the influence factors of personal pension replacementrate by the methods of quantitative analysis. The fourth part is the empirical researchto delay retirement on the impacts individual pension account replacement rate and todesign, operate and evaluate the model results on study hypothesis, determinedparameters of the program. The fifth part is the conclusions and policyrecommendations of the research: the paper puts forward constructive suggestions andcomments to focus on the promotion of delaying retirement system.The methods of research primarily are the combination of literature andquantitative analysis, such as the mathematical modeling methods. Literature is toconstruct literature database, collect original documents, such as the introduction ofthe national pension system reform, delaying retirement and other policies andregulations, deputies’ proposal, documents and regulations, domestic andforeign-related journal articles, books. Mathematical modeling is to build the actuarialmodel of personal account pension, the quantitative relationship between the delayingretirement, individual account pension and the pension replacement rate.The main conclusions are as follows: On the personal account of actuarialmodels, assuming all other constant variables, delaying the retirement age andindividual pension account replacement rate is an increasing function; average lifeexpectancy of the population and individual pension account replacement rate is adecreasing function. Therefore, with the grim situation of our aging population andthe average life expectancy of the population to continually extend, the trend isdelaying the retirement age.