Actuarial Studies On The Solvency Of Urban Employees’ Basic Endowment Insurance Fund

In response to the increasingly serious population aging problem, the countries of theworld, especially developed countries, have adjusted the legal retirement age. The discussionconcerning postponing retirement was started when the idea was hinted by Ministry of Laborand Social Security of the People’s Republic of China in2004. Proponents argue that delayretirement is a necessity, for the problems caused by the aging population are too pressing towait. Opponents claim that postponing retirement would have a great influence on theemployment of the new population. However, the discussion only became official after it wasproposed in Third Plenum of the Chinese Communist Party in2013. So the study about theimpact of postponing retirement age on the social is necessary. In this paper, we will study theimpact of postponing retirement age on the solvency of Urban Employees’ Basic EndowmentInsurance Fund.This paper, firstly, analyzes the current state of the situation of our country, and presentsevidence to support the issue of postponing retirement age. Secondly, according to the methodof endowment insurance fund and combining previous research results, constructs the revenueand expenditure calculating models of Urban Employees’ Basic Endowment Insurance Fundwhich consider the factor of “progressively postponing retirement age”, then deduce themodel to predict the solvency of endowment insurance fund. Thirdly, by designing threedifferent plans and combining the existing policy, simulate the operations of endowmentinsurance fund in different schemes. Lastly, this paper gives some suggestions on promoting the Solvency of Urban Employees’ Basic Endowment Insurance Fund, basing on thesummarizing of the foreign experience of adjust the retirement age.The findings are as follows.(1)With the retirement age postponing, the fund’s balance ofpayments are improved. But it does not fundamentally solve the phenomenon that the incomedoes not balance the expense, and it only delay the year of income over expenditure and deficit.(2)Different methods of postponing retirement age also have affect on the expenditure ofendowment insurance fund.(3) As the extending of the retirement age, the solvency ofendowment insurance funds tends to be more stable. At the same time, according to the results, thispaper puts forward some suggestions about the policy of postponing retirement age. And from theaspects of population structure and the endowment insurance fund, this paper gives somesuggestions on promoting the solvency of Urban Employees’ Basic Endowment InsuranceFund.