The Research On The Influence Of Pension Finance On Urban Residents’ Consumption In Central China

With the continuous development of the social process,the acceleration of the aging crisis in China,the local government pension financial pressure gradually increased.The development of multi-pillar pension finance has become the focus of the government because it can play the role of social pension.Meanwhile,in recent years,China’s savings rate remains high and consumer demand is weak,which restricts the healthy development of economy.In this context,it is of great significance to explore the impact of different types of pension finance on residents’ consumption.This paper first defines the concept of "pension finance" from a microscopic perspective,which mainly refers to a series of financial activities centering on the pension needs of social members.According to different social subjects,it is subdivided into basic pension insurance system of the first pillar led by the government,pension finance of the second pillar initiated by enterprises and employers(enterprise annuity business)and personal commercial pension finance of the third pillar.Then,it qualitatively analyzes the current situation of pension finance and urban residents’consumption in central China:the coverage rate of the second and third pillar pension finance is low,and the relative consumption tendency of urban residents is insufficient.Finally,quantitative analysis is conducted by using micro-data and propensity value matching(PSM)regression model based on CFPS(2018)survey data.It is found that age,income ability and education level have a significant impact on urban residents’participation in pension finance in central China.First,basic endowment insurance and commercial endowment insurance will stimulate all types of consumption of urban residents.Enterprise annuity has no significant impact on urban residents’ consumption,which may be due to the fact that there are few large state-owned enterprises in the central region and the "threshold effect" has not been crossed.Second,commercial endowment insurance has a more obvious promoting effect on urban residents’consumption.Third,the results of sample regression show that basic endowment insurance can increase the total consumption and developmental consumption of low-income groups,enterprise annuity can increase the basic consumption of middle and high income groups,and commercial endowment insurance can have a positive effect on the total consumption and basic consumption of middle and high income groups.In view of the current situation and problems,guided by the research results,all social subjects should take corresponding measures to speed up the improvement of the three-pillar pension financial system,in order to promote the economic growth and upgrading in central China.According to the empirical results,commercial endowment insurance has the greatest positive effect on urban residents’ consumption,so the development of the third pillar endowment finance in the central region should be accelerated first.First,the government should pay attention to the top-level design of pension finance,coordinated development of the six provinces;Second,the insurance industry should speed up legislation and amend relevant rules;Third,insurance institutions should innovate differentiated pension financial products;Fourthly,to increase the publicity to consumers for the elderly,improve exposure.