Aging Of Population On China's Household Saving Rates

We know that population of 65 years of age or older account for up 6.96% which is close to 7% based on the fifth population census.our country step into aging society in 21 st century when referred to international standard.at the same time,saving rates rose from 22.53% to28.14% at 1.49% per year between 2000 and 2014.It can be speculated that the aging has somehow connection with saving rates.This article choose two effect of the aging as a breakthrough point to study its effect on saving rates in case of the aging.Compared with the previous literature,this paper has three innovation.1,This paper focuses on the two effects of aging from the two aspects of the burden and the effect of life on the impact of the elderly on the savings rate,and we build these two effects through the theoretical model.2,This paper analyzes the impact of aging on the regional residents' saving rate in the case of population policy,according to the classification of the fertility rate as the standard.3,The existing literature rarely studies the savings rate between urban and rural residents.This paper examines the effects of aging on the urban savings rate and rural savings rate.We construct the utility function of typical family based on life cycle theory in which add life expectancy effect and burden effect from the aging and make a conclusion that the change of elderly dependency ration are contrary to that of saving rate,life expectancy and saving rates have same direction change.The specific mechanism is that because of elderly dependency ration rising,saving of parents in age of labor force decrease,and owning to saving for the rainy day.they will save if life expectancy rise and come to a conclusion that life expectancy and saving rates have same direction change.then,we use panel data of province in China to construct panel equation from three perspectives: national level,region dived by family planning policy,city and countryside between 2000 and 2014.We reach to specific conclusion.In national level,the rise of elderly dependency will cause significant decline in saving rates,life expectancy and saving rates have same direction change which is approved by significant testing.In region angle dived by family planning policy,we can speculate that family planning policy has different effects on region.In city and countryside,the rise of elderly dependency will cause significant decline in saving rates,but life expectancy is different,life expectancy andsaving rates have same direction change which is approved by significant testing in city,otherwise,in countryside he change of life expectancy are contrary to that of saving rate which is not approved by significant testing.Finally,according to the above conclusions,this paper puts forward some policy suggestions such as improving the mechanism of pension,putting off retirement step by step and relaxing two-child policy based on degree of the aging.