Study on the Impact of Pension Insurance on Household Consumption

DOI

10.2991/978-94-6463-874-5_157How to use a DOI?

Keywords

Pension Insurance; Resident Consumption; Income Effect; Wealth Effect; Life Cycle Theory

Abstract

Against the backdrop of China’s aging trend, the sound development of the pension insurance system is becoming increasingly crucial within the social security framework. It is noteworthy that the consumption rate among Chinese residents remains low, and there is substantial room for enhancing the role of consumption in driving economic growth. This paper takes the pension insurance system as a starting point to explore its impact mechanism on household consumption behavior, while systematically reviewing the developmental history of China’s pension insurance system. It combines the life cycle theory with the overlapping generation theory to analyze how pension insurance can improve household consumption propensity through the two dimensions of income effect and wealth effect. Furthermore, this paper discusses its impact from three dimensions: pension insurance type, security level and policy adjustment. This paper finds that urban employee pension insurance is more effective in stimulating consumption than urban and rural resident pension insurance by combining previous articles; improving pension levels helps to enhance consumption capacity, especially in the middle and low-income groups.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yifan Zhang
PY  - 2025
DA  - 2025/11/03
TI  - Study on the Impact of Pension Insurance on Household Consumption
BT  - Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)
PB  - Atlantis Press
SP  - 1389
EP  - 1396
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-874-5_157
DO  - 10.2991/978-94-6463-874-5_157
ID  - Zhang2025
ER  -