The Research Into Pension Plan Problem

Since July 1997,when State Council enacted the Decision on Establishing a Uniform Basic Old-Age Insurance System for Enterprise Employees,pension system has experienced a transition from previous pay-as-you-go system to social fund plus individual account system.But the financial gap,left behind by the transition of the pension system,has already accelerated to wear off the fund of the current pension and,more seriously,the financial gap has gradually became wider and wider.Simultaneously,pension replacement rate has been declined to 45% in 2014 since 2000,which has exceeded the warning level set by International Labor Organization Convention and means the living quality after retirement would decline obviously.So,individually speaking,it is of great importance to stock and do some investments for pension in advance.Public Offering Fund is one of the investment tools,but it is still a puzzle for investors to understand how to invest in Public Offering Fund effectively because it would bring some potential risks and would influence the investment returns.To help investors cope with the above problems in market,Harvest developed FAS Fund Investment Strategy System in May 2012,involving market forecasting,asset allocation and fund selection.After forecasting with FAS,optimization with FAS-RR and fund selection with FAS,the system would analyze the development trend of market,asset portfolio as well as the result of fund selection,and further offer some feasible fund portfolio suggestions for investors.Experiences have proved that the fund portfolio offered by FAS system behaved well not only in bull market,but also in fluctuation market or bear market.But since the fund portfolio suggested by FAS system doesn't take risk preferences of investors into account and investors must adjust the fund portfolio themselves based on the semi-annual research report by Harvest,the operation is complicated for investors and can not ensure the continuality of investment,further influencing the investment rewards.Customized account service strategy,shortened as customized account in this research,and customized semi-autonomous service strategy,shortened as semi-autonomous account,originate from FAS system,and has the characteristics ofinvestment operation by investor authorization.And they will serve as the ideal asset portfolio for investors in the case analysis in this dissertation and they will bring better and more professional pension investment service for investors.Besides,they are the innovation which are very distinctive to other research.Case study will be used in the research and virtual customer case will also be introduced.In the research,according to the fundamental analytical steps of pension plan,a large number of data would be analyzed and the pension supply situation would be offered based on calculation of financial demand of the pension demand.After that,pension gap would be calculated and customized account and semi-autonomous account would be developed with the consideration of investment return and risk characteristics of investors.Further the advantage of FAS development strategy and the real value of two derivatives of the operation authorization mode would be illustrated.