The most recent trends in population dynamics have provoked a rigorous debate whether the private or the public pension insurance system should be predominant. The pay-as-you-go system is dominated by the state that g...The most recent trends in population dynamics have provoked a rigorous debate whether the private or the public pension insurance system should be predominant. The pay-as-you-go system is dominated by the state that guarantees its stability. Private pension insurance provides personal retirement accounts and proper ownership of the accumulated funds, but its sustainability during prolonged market crises and inadequate risk sharing are often questioned. In order to address this issue, this paper makes both an assessment and analysis of the arguments put forward in favor of the preservation of the pay-as-you-go system and a comparison of this system with some of the main characteristics of the private accounts system. This is the basis for seeking the objectively defined role of the pay-as-you-go system in the conditions of the market economy. A couple of conclusions that have been formulated might be of interest for the future improvement of the organization and management of pension insurance.展开更多
This paper investigates the effects of postponing retirement on economic growth in an aging society by using the infinite overlapping generations model constructed by Blanchard (1985) in a simple endogenous growth fra...This paper investigates the effects of postponing retirement on economic growth in an aging society by using the infinite overlapping generations model constructed by Blanchard (1985) in a simple endogenous growth framework.It shows that postponing retirement may decelerate economic growth.展开更多
This paper analyzes and explains the causes of the ＂empty account＂ of our country＇s basic pension personal account based on the specific economic conditions and social backgrounds of each period in China. Explained...This paper analyzes and explains the causes of the ＂empty account＂ of our country＇s basic pension personal account based on the specific economic conditions and social backgrounds of each period in China. Explained that the ＂empty account＂ phenomenon of pension insurance is not universally believed to be caused by ＂high accumulation and low consumption＂economic development policies.The author puts forward two ideas for ＂filling up the air＂ in the individual pension account： 1. Ensure that the basic pension maintains its value.2. Accelerate the construction of individual pension accounts.展开更多
This paper reviews the development of the urban and rural old age security system in China, and discusses the challenges in the process of constructing a sustained old age security system. Althoughfunding gaps and emp...This paper reviews the development of the urban and rural old age security system in China, and discusses the challenges in the process of constructing a sustained old age security system. Althoughfunding gaps and empty individual accounts have imposed a heavy burden on the sustainability of China ＇s urban pension system, there is a relatively high coverage rate of 35.3 percent for urban workers. However, China＇s pension system provides low coverage ratefor rural farmers. The more rapidly aging population and lower incomes in rural areas pose challenges to the vulnerable rural househoM support system. The separation of the oM age security system between rural and urban areas also puts great pressure as a result of urbanization on farmers who lose their farmland. Therefore, it is urgent for China to speed up the reform o fits old age security system to provide an institutional support for its economic and social transition.展开更多
In linewith advicefrom internationalfinancial institutions, China introduced a three-pillar pension system in 1997. However, it performs badly, with high contribution levels, the ‘funded’ contributionsbeing used for...In linewith advicefrom internationalfinancial institutions, China introduced a three-pillar pension system in 1997. However, it performs badly, with high contribution levels, the ‘funded’ contributionsbeing used forcurrent expenditures,and delaysinpension payments. The problemsareoften ascribed tothe remaining elements of pay-as-you-go (PAYG) present in thesystem. Thispaper, however, arguesthat the advantagesofa fully-funded system (FF) havebeen exaggerated. The higher relative return of the PAYG system in China justifies a PAYG pension system forChina. It is arguedthat theproblemsoftheChinesepension system are not caused by the use of PAYG butbytheneed to finance transition costs and conditions particularto the pension system in China, notablyincomplete contribution coverage, a low pension age, and a high replacement rate. Itisthesefactors, and therateofgrowth ofoutput, which determine the viabilityof theChinese pension system.展开更多
This paper mainly analyzes development and reform of China’s pension system. It introducesthe evolution of China’s pension system reform and discusses its strengths and problems.The paper then proposes some suggesti...This paper mainly analyzes development and reform of China’s pension system. It introducesthe evolution of China’s pension system reform and discusses its strengths and problems.The paper then proposes some suggestions on the direction of China’s pension reform. Thelast section is devoted to a discussion of China’s corporate occupational pension, which isa fast-developing area of the pension system.展开更多
文摘The most recent trends in population dynamics have provoked a rigorous debate whether the private or the public pension insurance system should be predominant. The pay-as-you-go system is dominated by the state that guarantees its stability. Private pension insurance provides personal retirement accounts and proper ownership of the accumulated funds, but its sustainability during prolonged market crises and inadequate risk sharing are often questioned. In order to address this issue, this paper makes both an assessment and analysis of the arguments put forward in favor of the preservation of the pay-as-you-go system and a comparison of this system with some of the main characteristics of the private accounts system. This is the basis for seeking the objectively defined role of the pay-as-you-go system in the conditions of the market economy. A couple of conclusions that have been formulated might be of interest for the future improvement of the organization and management of pension insurance.
文摘This paper investigates the effects of postponing retirement on economic growth in an aging society by using the infinite overlapping generations model constructed by Blanchard (1985) in a simple endogenous growth framework.It shows that postponing retirement may decelerate economic growth.
文摘This paper analyzes and explains the causes of the ＂empty account＂ of our country＇s basic pension personal account based on the specific economic conditions and social backgrounds of each period in China. Explained that the ＂empty account＂ phenomenon of pension insurance is not universally believed to be caused by ＂high accumulation and low consumption＂economic development policies.The author puts forward two ideas for ＂filling up the air＂ in the individual pension account： 1. Ensure that the basic pension maintains its value.2. Accelerate the construction of individual pension accounts.
文摘This paper reviews the development of the urban and rural old age security system in China, and discusses the challenges in the process of constructing a sustained old age security system. Althoughfunding gaps and empty individual accounts have imposed a heavy burden on the sustainability of China ＇s urban pension system, there is a relatively high coverage rate of 35.3 percent for urban workers. However, China＇s pension system provides low coverage ratefor rural farmers. The more rapidly aging population and lower incomes in rural areas pose challenges to the vulnerable rural househoM support system. The separation of the oM age security system between rural and urban areas also puts great pressure as a result of urbanization on farmers who lose their farmland. Therefore, it is urgent for China to speed up the reform o fits old age security system to provide an institutional support for its economic and social transition.
文摘In linewith advicefrom internationalfinancial institutions, China introduced a three-pillar pension system in 1997. However, it performs badly, with high contribution levels, the ‘funded’ contributionsbeing used forcurrent expenditures,and delaysinpension payments. The problemsareoften ascribed tothe remaining elements of pay-as-you-go (PAYG) present in thesystem. Thispaper, however, arguesthat the advantagesofa fully-funded system (FF) havebeen exaggerated. The higher relative return of the PAYG system in China justifies a PAYG pension system forChina. It is arguedthat theproblemsoftheChinesepension system are not caused by the use of PAYG butbytheneed to finance transition costs and conditions particularto the pension system in China, notablyincomplete contribution coverage, a low pension age, and a high replacement rate. Itisthesefactors, and therateofgrowth ofoutput, which determine the viabilityof theChinese pension system.
文摘This paper mainly analyzes development and reform of China’s pension system. It introducesthe evolution of China’s pension system reform and discusses its strengths and problems.The paper then proposes some suggestions on the direction of China’s pension reform. Thelast section is devoted to a discussion of China’s corporate occupational pension, which isa fast-developing area of the pension system.
