Research on the Replacement Rate of Pension

Abstract

According to the provisions of the present institution endowment insurance policy, this paper establishes a model for calculating the replacement rate of pension insurance for the employee of the government institutions, who according with formulary capture to expend fixed number of year and retiring after the implementation of the new policy to retire. It can not only measure the pension replacement rate for the "someone joins in the beginning", but also can for the "someone joins in the Intermediate stage ". The results show that the pension replacement rate is positively related to the actual payment period, and is negatively related to the payment of wages. As long as the one-year deposit rate to remain at around 2.5% level, can achieve a smooth transition, and to maintain a slight upward trend of pension replacement rate. At the same time, for those who have paid for 15 to 35 years, the pension replacement rate will increase from 40% to about 93%.