How Population Ageing and Pension Insurance Shape Household Risk Investment: Evidence from China
By Xueyao Que, Zhen Wang & Chu Chen
Against the backdrop of rapid population ageing and the ongoing expansion of China’s multi-tiered pension insurance system, understanding how to promote household risk investment has become increasingly important for fostering the development of the silver economy and improving household wealth allocation. Using data from the 2019 China Household Finance Survey (CHFS), this study empirically examines the effects of population ageing and pension insurance on household risk investment behaviour and explores the underlying mechanisms. The empirical findings show that population ageing has a significant inhibitory effect on household risk investment, whereas pension insurance significantly increases household participation in risk investment. Further analysis reveals that household economic conditions serve as an important mediating channel, while pension benefit adequacy and household income exert significant moderating effects on these relationships. A series of robustness checks are conducted to ensure the reliability of the results. These findings provide important policy and practical implications for the design of life-cycle-oriented financial products, the promotion of elderly participation in capital markets, and the further refinement of China’s multi-tiered pension insurance system.
Source SSRN
