Required amount of money to retire in thirty years in China

Abstract

This thesis assesses the replacement ratio effects of the total amount of money people will need after retirement in thirty years. Using previous studies about Chinese consumption budget allocation and formula of replacement ratio, combining with latest statistics from National Bureau of Statistics of China, we separate sample into 5 parts, and work out a general formula for retirement pension account calculation. The data help us to figure out how can the changes in age- and work-related expenditures in different categories effect on required replacement ratio, and how can replacement ration effect on pension account. We find that Chinese people have a relatively lower required replacement ration than national standard, and drawing pension monthly lets people receive most and undertake the basic retirement life. Lastly, we still have the conclusion of critical importance of private pension saving and investment. People need to transform their percentage of pension account.