The fund accumulation system emphasizes giving individuals the freedom to choose investment, which will make the insured members pay higher economic and non-economic costs and investment choice risks. After all, residents' knowledge and information about financial investment is limited, and not everyone has the ability to choose suitable investment tools and investment objects.
Extended data:
Under the fund accumulation system, this kind of investment risk is likely to cause a serious shortage of fund accumulation in individual accounts of all members who are about to withdraw from the labor market in a certain period of time. A certain generation of retirees will fall into poverty if the government does not provide the minimum income guarantee for personal accounts.
In particular, if personal accounts are the main source of pensions, there will be a greater possibility of a large number of elderly poor people. This not only failed to achieve the government's social goals, but also probably caused insufficient total consumption demand because of the existence of a large number of poor people, which dragged down economic growth.
Baidu Encyclopedia-Fund Accumulation System