Research On The Level Of Protection For Rural Residents Under China’s Current Urban And Rural Old-age Pension System

Pension problem of rural residents is the core problem of rural social security. It is also an indispensable part of the social security system in China. China has been the aging society. Since the development of market and urbanization in rural areas, which make the degree of aging in rural areas much higher than that in the cities. Family pension manner has gradually weakened in these years. In this "getting old before getting rich" situation, how to solve the pension problem of rural residents has become more important than before. Rural endowment insurance system in China went through exploration and improvement in the past few decades. It changed from the rural pension insurance to the new rural social pension insurance system and then existing urban and rural pension insurance system. The purpose of the rural endowment insurance system is to meet the primary needs of rural elder residents, then the study about existing rural endowment insurance system become necessary.This paper studies the pension level of rural residents. Firstly, I introduce the development of rural endowment insurance system and the content and features of the existing pension system and summarize the development process of "the new agricultural insurance", analyzing the development of rural endowment insurance system. Secondly, using the insurance account balance to calculate the actual level of the existing urban and rural pension insurance system, I get different levels of the different contributions at each pay grade. Thirdly, using extended linear expenditure models and adjusted Engel coefficient to calculate the upper and lower levels of modest protection, I get estimated level of moderate protection range. After compared with the actual level of protection, I find that China’s current pension system is generally low for protection of rural residents and find that there is some problems in payment system of fixed payment amount. Finally, I will analyze and summarize Germany, Japan, and US endowment insurance systems, learning from the experience of rural pension system abroad. Then I come up with some recommendations for the optimization of rural pension insurance system in China.