(Economic Observation) What are the "upgrading" challenges that China faces to better realize the "old age"?
China News Service, Beijing, August 16th, title: What are the "upgrading" challenges that China faces to better realize the "old age"?
China News Agency reporter Wei Xi
The acceleration of population aging has put China facing unprecedented pressure on old-age security. How to better realize the "ageing for the elderly" and make the old-age security system more sustainable, wider coverage, and fairer, China still faces considerable "upgrading" challenges.
"Pension insurance is not only a guarantee for the elderly, it is also directly related to the long-term stable development of the country's economy and society." Hu Xiaoyi, president of the Chinese Society of Social Insurance and former vice minister of the Ministry of Human Resources and Social Security According to the Forum of 50 People in Pension Finance, almost every family faces real or potential financial risks for the pension, and pension insurance arrangements almost need to run through the whole process of a person from adult to middle-aged.
Hu Xiaoyi said that the amount of pension insurance paid directly by China in 2019 was about 5 trillion yuan, accounting for about 22% of China's general public budget expenditures that year; as of the end of 2019, basic pension insurance, occupational annuities, corporate annuities, strategic pensions, etc. There is also a surplus reserve of 11 trillion yuan. "A total of 16 trillion yuan in pension insurance funds operate in the social economy, and the wealth is quite large." China’s old-age security system is the largest old-age security plan in the world in terms of overall and individual systems, but there are still problems of insufficient accessibility, mobility, and inclusiveness; among groups, regions, urban and rural areas There are also differences in pension treatment between.
To this end, China's pension system should have a clearer plan. Hu Xiaoyi suggested that first, we must implement a universal participation plan, especially for new business groups and urbanization transfer groups; second, we must promote the national overall plan of pension insurance funds and enterprise employee pension insurance funds to be implemented on a larger scale; 3. It is to gradually delay the retirement age; the fourth is to expand financing channels and increase strategic reserves.
"Gradually delaying the retirement age in China is an unavoidable choice. It is just a matter of strength, time, method, and path." Hu Xiaoyi said.
According to the "China Development Report 2020: Development Trends and Policies of China's Population Aging" recently released by the China Development Foundation, China's population aging has continued to deepen since entering an aging society in 2000. By around 2022, China’s population over the age of 65 will account for 14% of the total population; in 2050, China’s aging will reach its peak, and the population over the age of 65 will account for 27.9% of the total population.
China's population aging is coming quickly and on a large scale, and it is happening at a stage where China's economy is not yet developed and its development is not yet balanced, making China face the dual challenges of "aging before getting rich" and "aging before getting ready".
Cao Deyun, Executive Vice President and Secretary-General of the Insurance Asset Management Association of China, suggested that insurance institutions should give full play to the four major business expertise of long-term capital management, large-scale asset allocation, long-term asset creation, and prudent and prudent investment, and assume their due social responsibilities.
Cao Deyun believes that China should study the issue of promoting further expansion of pension investment scope. Judging from international experience, the diversified allocation of pensions is an important basis for achieving value preservation and appreciation. For this reason, he suggested that on the basis of asset allocation for various types of pension funds, various departments should gradually expand equity investment, alternative investment, industrial investment, and overseas investment under the premise of controllable risks, so as to accumulate longer-term, more lasting, and more High-quality pension insurance assets. In addition, more financial technology should be used to enhance the operational capabilities of pension digitalization.
Xu Jinghui, general manager of Dajia Insurance Group Co., Ltd., believes that when it comes to building an old-age security system, it is first necessary to analyze the needs of Chinese residents' old-age security. This mainly covers three aspects: one is to avoid insufficient pension reserves due to the increase in life expectancy; the other is to deal with the risks of economic cycle downturn and capital market fluctuations, and to achieve the preservation and appreciation of pensions; and the third is to build additional security for pension life. Effectively obtain health and elderly service resources. "Insurance can play a unique role and value in meeting these needs."
Xu Jinghui believes that because the operating characteristics of insurance funds can perfectly meet the requirements of pension funds for safety, profitability and liquidity, the insurance industry can further utilize its professional advantages in long-term fund management and its market-oriented operation mechanism. Advantages, more in-depth participation in the entrusted management services of pension funds, serving to improve the efficiency of the use of pension funds. (Finish)