Impacts of Aging in Urban Areas and Policy Suggestions to Fund-raising Models in Endowment Insurance
城市人口老龄化对养老保险筹资模式的影响及政策建议

The level of aging in the urban areas will continue to raise, a problem which is more severe than in the rural areas. The impacts of aging in the urban areas on fund-raising models of endowment insurance demonstrate the increasing rate of retirement annuity to the total salary and greater potential debt problems in the payment models of social and individual collection. Although the government issued the Experimental Guidelines for Accomplishment of Social Insurance System to perfect the models in 2000, the existing structural conflicts have not yet been solved. The current fund-raising model of endowment insurance still bears the burden of an increasing amount of retirement annuity and faces payment crisis. The solution to aging lies in developing an up-to-date retirement insurance policy. One way is to decrease the substitutive rate of the retirement annuity. With a long tradition of low salary and high substitutive rate of retirement annuity, there is no way to raise enough funds for endowment insurance. The other way is the " three bolsters" to prevent poverty of aging and to maintain living standard of retirements. The first bolster is worker-based endowment insurance, which is compelled by the state law. It's a base of endowment insurance. The second bolster is an individual-collection-based compulsory retirement saving plan. Its purpose is to help the young to save money for the future. The last bolster is volunteer-based saving. Individuals and entrepreneurs think that their demands and abilities are over and they save for a better living standard after retirement. Through decreasing the substitutive rate of retirement annuity and the thought of "three bolsters", we can hope to overcome, to some extend, the burden of the increasing amount of retirement annuity and the payment crisis.