Assessing the Sustainability of China’s Basic Pension Funding for Urban and Rural Residents

Lanying Sun, Changhao Su and Xinghui Xian
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Lanying Sun: College of Management and Economics, Tianjin University, Tianjin 300072, China
Changhao Su: College of Management and Economics, Tianjin University, Tianjin 300072, China
Xinghui Xian: Petro China Southwest Pipeline Company, Chengdu 610041, China

Sustainability, 2020, vol. 12, issue 7, 1-17

Abstract: This paper uses an actuarial model to evaluate the effect of poverty alleviation policy on the sustainability of China’s basic pension funding for urban and rural residents (BPFUUR). Because of the poverty alleviation policy, China’s basic endowment insurance for urban and rural residents (BEIURR) has been given the responsibility of helping the poor through insurance and by increasing the income of the elderly. On the basis of summarizing the current situation of BEIURR, this paper simulated and predicted the impact of poverty alleviation policy on the short term (2020–2025) and medium term (2025–2050) sustainability of China’s BPFUUR. The results show that: (1) The sustainability of the fund will inevitably face challenges; (2) The per capita contribution level will be at a low level for a long time; (3) The birth tide brought by the two-child policy has a positive impact on the medium-term sustainability of the fund; (4) Poverty eradication mainly affects the short-term current deficit, but not the medium-term accumulated deficit; (5) The higher the payment, the better the sustainability of the funding in the short and medium term. According to the above results, this paper puts forward some countermeasures, such as insisting on family planning, optimizing the adjustment system for basic pension funds, and improving the treatment of basic pensions.

Keywords: urban and rural residents; basic pension funding; poverty eradication; equalization of basic public services (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:7:p:2833-:d:340637

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