Financial Imbalance Risk and Its Control Strategy of China’s Pension Insurance Contribution Rate Reduction

Table 7

Results of the sensitivity analysis of three parameters.

Collection rate (%)	Postponing retirement age scheme	Percentage of external finance	Return on investment		Growth rate of pension benefits		Nominal interest rate
			Years of the accumulated deficit	Actuarial balance rate (%)	Years of the accumulated deficit	Actuarial balance rate (%)	Years of the accumulated deficit	Actuarial balance rate (%)
65	N/A	0	2024–2060	41.96	2024–2060	37.47	2024–2060	42.19
75	N/A	0	2026–2060	35.30	2027–2060	31.41	2026–2060	35.50
85	N/A	0	2029–2060	30.21	2031–2060	26.77	2029–2060	30.38
65	Scheme 1	0	2024–2060	28.47	2025–2060	24.51	2024–2060	28.17
65	Scheme 2	0	2025–2060	25.64	2027–2060	22.57	2025–2060	25.67
65	N/A	23.5%	2030–2060	30.06	2032–2060	26.66	2030–2060	30.26
75	Scheme 1	0	2027–2060	23.61	2029–2060	20.18	2027–2060	23.34
85	Scheme 1	0	2032–2060	19.89	2039–2060	16.87	2032–2060	19.66
75	Scheme 2	0	2035–2060	21.16	2053–2060	18.50	2035–2060	21.18
85	Scheme 2	0	2054–2060	17.73	N/A	15.38	2055–2060	17.75
75	N/A	23.5%	2035–2060	24.99	2040–2060	22.03	2035–2060	25.16
85	N/A	23.5%	2043–2060	21.11	2051–2060	18.50	2042–2060	21.26
65	Scheme 1	23.5%	2033–2060	19.76	2057–2060	16.76	2033–2060	19.56
65	Scheme 2	23.5%	2055–2060	17.60	N/A	15.28	2055–2060	17.65
75	Scheme 1	23.5%	2060	16.06	N/A	13.46	N/A	15.88
85	Scheme 1	23.5%	N/A	13.23	N/A	10.94	N/A	13.07
75	Scheme 2	23.5%	N/A	14.19	N/A	12.17	N/A	14.23
85	Scheme 2	23.5%	N/A	11.58	N/A	9.80	N/A	11.61