The Influence Of Basic Pension Insurance On Urban Resident’s Consumption

The high savings rate is a common phenomenon in our country,which restrict the development of China’s economy,as the aging of the population increasing,the pension has become one of the main problems we are facing in the society.This view is also adapted to the consumption motive in residents in current affair.A sound pension insurance system is a basic livelihood security system,which is related to the income of the residents and the retirement of the elderly.Theoretically,the pension insurance system is closely related to the consumption of the residents.Considering China’s vast territory,the economic development level in different provinces,population structure,natural resources and other factors,the gap between regions are not the same.The endowment insurance system is not overall in our country,the basic pension insurance have achieved the province overall in Jiangxi province in 2004,so it is necessary to study the specific provinces.By the end of 2016,the final consumption accounted for 59%in GDP in China,the developed countries is more than80%,However,Jiangxi province is less than 50%,which reflect Jiangxi province has a serious shortage of domestic demand.At the same time,the marginal propensity to consume in Jiangxi also shows a downward trend,and the total savings of residents keeps rising.Urban residents pay more attention to savings in Jiangxi province,the most uncertain factors in reality are the rising cost of education,medical treatment,housing and so on.The perfect social security system is helpful to reduce the result of these uncertain factors and promote the consumption obviously.Considering the proportion of endowment insurance expenditure in Jiangxi province is more than 80%.Therefore,this paper mainly studies the impact of basic pension insurance system on urban residents’ consumption.Therefore,this paper will analysis and study the influence about Jiangxi province urban basic old-age insurance on consumption by empirical.This thesis is based on the life cycle theory,overlapping theory of generations,precautionary saving theory,analysis of the impact mechanism of the basic old-age insurance on consumption in theory,then establish the relevant index system.Firstly,analysis the current situation and preliminary data relationship between basic endowment insurance and the consumption of urban residents in Jiangxi Province.Secondly,make regression analysis from 2001 to 2015 by time series data,study on the influence of basic endowment insurance in Jiangxi Province on the consumption level of urban residents,further analysis of basic endowment insurance in Jiangxi Province on the consumption structure of urban residents has influence.Finally,the relevant research results:the basic pension insurance in Jiangxi province has a positive effect on urban residents consumption,that is,the positive correlation.However,the disposable income dominates the consumption of urban residents,and the correlation coefficient is 7 times compare to the consumption of basic old-age insurance for urban residents.The impact on consumption structure of urban residents in the basic old-age insurance in Jiangxi province expenditure,food,clothing and housing has a significant effect,medical,educational and cultural entertainment and spiritual consumption in Jiangxi province is not significantly affected,which indicate that endowment insurance system need to continue to improve according to the needs of the aging of this situation in Jiangxi province and expand the coverage of endowment insurance,strengthen personal accounts management,increase health and education investment and implement the people’s livelihood finally.