The Impact of Income on Rural Residents’ Retirement Saving: Evidence from China

Ruiting Sun and Xueping Xiong ()
Additional contact information
Ruiting Sun: School of Mathematics and Statistics, Hubei University of Education, Wuhan 430205, China
Xueping Xiong: College of Economics and Management, Huazhong Agricultural University, Wuhan 430070, China

Agriculture, 2023, vol. 13, issue 9, 1-14

Abstract: Population aging is a fundamental national condition that runs through China in the 21st century. The aging degree of rural areas in China is high, but the government-sponsored retirement plans have difficulty in meeting the retirement living needs. Guiding rural residents to save for retirement is the main way to alleviate the economic pressure of retirement life in rural areas. This paper uses data from the CAFF50 Survey to examine the impact of income level and income uncertainty on the retirement saving behavior of rural residents. Different from existing literature, this paper categorizes the retirement saving behavior into three aspects: “retirement saving decision”, “retirement saving amount”, and “retirement saving way choice”. The results show the following: (1) Income level has a positive impact on the retirement saving decision, saving amount, the choice of real estate, and a negative impact on the choice of bank savings. (2) Income uncertainty has a positive impact on retirement saving decision, the choice of stock and fund, and a negative impact on the choice of bank savings, but the impact of income uncertainty on the amount is not significant. (3) There is an interaction effect between income level and income uncertainty on the impact on retirement saving amount, bank savings choice, and real estate choice. Based on the above conclusions, we think that it is necessary to increase fiscal subsidies and tax incentives, optimize retirement financial products, provide retirement financial education, and increase the participation enthusiasm of rural residents in retirement savings.

Keywords: income level; income uncertainty; retirement saving; preventive savings (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.mdpi.com/2077-0472/13/9/1756/pdf (application/pdf)
https://www.mdpi.com/2077-0472/13/9/1756/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jagris:v:13:y:2023:i:9:p:1756-:d:1232665

Access Statistics for this article

Agriculture is currently edited by Ms. Leda Xuan

More articles in Agriculture from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().