Can the Progressive Retirement Policy Enhance the Financial Sustainability of the National Pooling System for Endowment Insurance

Against the backdrop of the increasingly aging population in China, the surplus of endowment insurance funds is decreasing in provinces with surpluses, and the gap in provinces with deficits is expanding, which weakens the financial sustainability of the national pooling system for the adjustment of surpluses and deficits. The progressive delayed legal retirement age policy can extend the contribution years, increase the fund revenue, and delay the years for receiving pensions. It is worth exploring the impact of this policy on the financial sustainability of the national pooling system. The results of the actuarial balance model show that the progressive delayed legal retirement age policy can significantly improve the financial sustainability of the national pooling system, delay the time when the current deficits of endowment insurance funds begin in most provinces, and greatly reduce the cumulative financial subsidies; the policy effect has regional heterogeneity. Before 2035, with a more significant promoting effect on eastern provinces before 2035, and a stronger effect on western provinces thereafter; measures to improve the collection rate can further reduce the financial subsidies. Therefore, the progressive delayed legal retirement age policy improves the financial sustainability of the national pooling system by increasing sources of revenue and reducing expenditure, and optimizing the regional burden distribution. Supplemented by measures such as improving the collection rate, feasible solution can be provided to deal with the problem of the gap in endowment insurance.