Research on the Optimization of Incentive Payment Policy of China's Basic Social Pension System Based on Supply Constraints

ABSTRACT

In the context of the continuing outbreak of COVID-19, the Chinese people, together with the people of the world, are suffering from the problems brought about by COVID-19. Besides the goal of adequacy, how to improve affordability, sustainability and robustness of pension system is also the key issue as limited individual contribution capacity and limited financial affordability of governments at all levels, and the need for sustainable level of basic living needs. Therefore, this article focuses on limited supply constraints, analyzes individual contribution capacity, and discusses the relationship between individual contribution capacity and government financial subsidies, then, based on the analysis of limited supply constraints above, this article discusses the needed individual contributions of rural residents in China based on the condition that the multi-level annual basic living needs are satisfied to achieve the goal of adequacy. At last, some suggestions for optimizing the incentive payment policy of rural social pension system in China are put forward. The aims are to promote rural residents to continue to pay their contributions, raise the payment level and extend the payment period within the scope of their abilities, then to achieve the goals of adequacy, affordability, sustainability and robustness. © 2021 Kriedt Enterprises Ltd. All right reserved.