Research On The Fiscal Burden By Urban Worker Endowment Insurance In China

As an important part of social security system, endowment insurance plays an important role in maintaining social stability and economic development. Government finance is closely connected with the endowment insurance. As the initiator and guarantee of system, the government puts part of revenue to subsidize pension insurance, in order to improve the level of old-age security. Whether the fiscal burden is reasonable affects not only the efficient allocation of financial resources, but also the fairness of financial redistribution. In recent years, although the urban worker pension contribution rate has been stubbornly high, the pension fund is difficult to achieve financial balance. The fiscal burden has also increasingly aggravated. The sustainability of the pension system has received widespread attention from society and academic. In theory, the system dependency ratio is slightly above 30%. According to “Commission Account” mode, the income of pension funds is enough to pay the elderly. But in fact, the financial sustainability of pension fund depends on government perennial subsidy. Therefore, the paper focuses on analyzing the problems existing in pension system, and exploring the solution to improve the efficiency of fiscal subsidies.Firstly the paper defines the related concepts, and expresses the necessity and importance of financial support for urban worker endowment insurance. Then the paper describes the situation of pension operation and financial subsidy, predicts the trend of financial subsidy by descriptive statistics and actuarial mathematical methods. In the future 26 years, the number of insured retirees will increase. The problem of pension income over expenditure will worsen and the financial subsidy will increase. On the basis of description, this paper analyzes the issues, reasons and strategies to solve to problems. Public pension plays an important role in improving the living level of low-income. The paper estimates the fiscal burden of establishing the public pension. In addition, the paper proposes recommendations to establish and improve related facilities.