Research on the Problems of Pension Finance in China

With the obvious development trend of global aging, the "three-pillar" model is becoming the mainstream choice for the reform of pension systems in various countries. The Central Economic Work Conference proposed to standardize the development of the third pillar of pension insurance. China's multi-level pension insurance system consists of three pillars, of which the first pillar is basic pension insurance, the second pillar is corporate and occupational pensions, and the third pillar includes individual savings-type pension insurance and commercial pension insurance. Although the three pillars indeed bring a certain level of protection, they still face some objective problems. For example, China is facing the challenge of an aging population, with the proportion of elderly people aged 65 and above continuing to rise. In order to deal with the challenges posed by aging, the Chinese government has introduced a series of policies and measures, including the Guidelines for Pension Targeted Securities Investment Funds (for Trial Implementation) in 2018 and the 2019 Opinions on Promoting the Development of Pension Services issued by the General Office of the State Council. But pension funds still face many problems, like risk management, hedging and so on. This paper will use the risk management method, asset portfolio, personalization and so on to solve the problem of pension finance, and ultimately using these financial instruments and the corresponding means, can indeed play a role in preventing risks.