Research On The Impact Of Age Structure Changes On Household Financial Asset Allocation

The results of the 7th National Population Census in 2021 show that China’s population age structure has undergone significant changes,with "aging" and "fewer children" being the two main characteristics of China’s current and future population age structure.As the basic unit of a family,changes in the age structure of the population will inevitably have an impact on family economic behavior.As an important component of family economic behavior,the allocation of family financial assets will also be affected by changes in the age structure of the population.This article uses the children’s dependency ratio and the elderly’s dependency ratio as alternative variables to measure the changes in the age structure of the family’s internal population,and explores the impact of age structure changes on the allocation of financial assets in their families.Based on the current age structure of China’s population and the development status of household financial asset allocation,this article summarizes and summarizes literature review,and proposes hypotheses with the main theoretical support of life cycle theory,preventive savings theory,and behavioral finance theory.The hypothesis is empirically verified using the 2019 China Household Finance Survey data(CHFS).After research,it is found that:,An increase in the dependency ratio of children in a family will increase the family’s preference for risk,reduce preventive savings and promote the allocation of risky financial assets,while an increase in the dependency ratio of elderly people will reduce the family’s preference for risk,increase preventive savings and inhibit the family’s investment in risky financial assets.In addition,this article combines the increasing emphasis on financial education for investors and the popularity of the internet in the current era,and incorporates financial literacy and the use of the internet into the analysis framework.It further finds that improving financial literacy and increasing internet use can effectively promote households’ investment in risky financial assets in the current context of "aging" and "fewer children".Finally,based on the research conclusions of this article,suggestions are proposed: firstly,encourage innovation in financial products and provide personalized services.The second is to improve the social security system and reduce the burden on families.The third is to popularize residents’ financial knowledge and improve their financial literacy.The fourth is to improve network infrastructure and deepen the use of the internet.