Practical Difficulties And Optimization Suggestions Of Individual Tax-deferred Endowment Insurance In China

With the significant increase in life expectancy,low fertility and low mortality,the age structure of the population tends to be columnar,which has become the main demographic feature for a long time at present and in the future.In 1991,China put forward the conceptual framework of Multi-pillar Pension System,which has made great development in the past 30 years.The first pillar has covered more than 1billion urban and rural residents,but the gap in pension revenue and expenditure of the first pillar has emerged,and the pension substitution rate has decreased to 41.28%;After 17 years of development,the second pillar has gradually matured,but its insurance threshold and coverage are narrow;There is still a big gap between the development of the third pillar and the development of the other two pillars.The aging has entered the acceleration period and the plateau period,and there is not much time to improve the pension system.In this context,China conducted theoretical and policy research on the personal tax-deferred pension insurance in 2007.After ten years,the official pilot of the personal tax-deferred pension insurance was launched in 2018,but its development was less than expected.Therefore,this paper takes the pilot of the personal tax-deferred pension insurance in 2018 as the research object,analyzes the problems existing in the development,and provides developmental suggestions.Firstly,This paper combs the relevant academic overview at home and abroad,and studies the relevant theoretical knowledge.Secondly,it studies the individual pension plan policies in the multi pillar systems of the United States,Canada and Germany,finds that the individual pension plan with individual tax-deferred policies has developed mature and achieved remarkable results,and investigates the current situation of the pilot of the personal tax-deferred pension insurance in China.Then,by constructing an actuarial model,querying the relevant economic and demographic data of Shanghai,and performing assignment simulation on the model,we can quantify the tax saving effect and pension security level of the pilot for the insured with different income and risk preference.Through the simulation data results,it is found that there are still some problems in the pilot,such as lack of fairness,narrow coverage,insufficient tax optimization and so on.In addition,through the analysis of the pilot policies and results,it is also found that there is a lack of restrictions on surrender and early withdrawal,a single product and interest rate setting,and insufficient sales power of insurance companies and their agents.Finally,it draws lessons from the relevant development experience of developed countries: gradually improve the diversified tax preferential policies,pay attention to the fairness of insured groups,dynamically adjust the amount of tax preferential to adapt to economic and social development and set up a punitive mechanism.Based on the problems existing in development and foreign enlightenment,this paper puts forward the following suggestions: formulate diversified tax preferential policies,improve policy coverage and implement the concept of fairness;optimize the tax priority and adopt the dynamic adjustment mode;formulate exit mechanism and improve supervision system;enrich product types to meet different investment needs;improve the enthusiasm and professionalism of insurance companies and sales personnel.At present,China has promoted the active response to population aging and the development of Multi-pillar pension insurance system to a strategic height.During the 14 th Five Year Plan period,the personal tax-deferred pension insurance will usher in the best development opportunity.At the same time,more inclusive policies and richer measures are needed to promote the substantive progress of the personal tax-deferred pension insurance.Through the discussion and research on the necessity,development process,practical difficulties and optimization suggestions of building the personal tax-deferred pension insurance,this paper affirms the far-reaching significance of the tax preferential policy for the better development of the third pillar in the future,and is intended to provide suggestions for building a Multi-pillar and high-quality endowment security system.