There is a common trend in the reform of the international pension security system, which is to make the entire government's responsibilities downward.

In the reform practices of various countries, there are three main forms of fundamental changes:

First, the pension social insurance model with pay-as-you-go and defined benefits is transformed into private accumulation with defined contributions. model, represented by Chile. As the reform towards a private savings accumulation model has become the focus of attention in various countries, we will analyze it in detail later.

The second is the transformation from a pay-as-you-go, defined benefit pension social insurance model to a pay-as-you-go, defined payment nominal personal account model, represented by Sweden. Other countries that implement this model are Italy, Lithuania, Poland, Latvia and (currently) China. This model has some common characteristics with the private savings accumulation model: personal accounts are established, and individual and unit contributions are credited to the personal account; pension benefits are paid in a defined payment method, and pensions depend on the accumulation of personal accounts. The difference between the two lies in the different functions of personal accounts: in the savings accumulation model, the personal account is real, and the account funds are used for investment operations; in the nominal personal account model, the personal account is empty and nominal, and the real account funds are used. For the payment of pensions to current retirees, the role of personal accounts is only a means of calculating benefits, and its financing method is still pay-as-you-go; nominal personal accounts cannot be invested and are generally determined by the government based on wage growth and other factors. A nominal interest rate at which individual accounts accumulate nominally. The nominal personal account model is similar in form to the savings accumulation model (personal accounts are established, and pensions are determined based on the accumulation of personal accounts), but in essence it is still a pay-as-you-go model (without actual fund accumulation). There are two main reasons for implementing this reform model: some countries regard this model as a basic part of the pension security system (i.e., the first pillar), with the purpose of linking pension benefits to the contribution level and payment years (defined contribution type). ), encourage employees to work hard, and encourage employees to actively request to extend their working life and postpone retirement (such as Sweden, Latvia, Lithuania, Poland); second, some countries hope to establish a second pillar of savings accumulation, but due to the difficulty in raising funds generated during the transition process Compensation funds for huge historical debts have to adopt this nominal personal account model that temporarily does not need to repay historical debts as a transitional model (such as Italy and China).

Among the above two changes, the private savings accumulation model is the most eye-catching. Chile’s successful experience in reform and the World Bank’s strong advocacy make it almost difficult for countries to avoid the influence of the Chilean model in their reform decision-making processes. In recent years, the privatization of pension security has become a hot topic in the process of governments adjusting and reforming social security policies.

The third is to change from the public savings accumulation model to the pay-as-you-go social insurance model. This change has occurred in some African and South Asian countries that have followed the Singaporean model. Due to serious corruption in the government's management of pension funds, a large number of pension funds were lost and the system declared bankrupt, forcing it to return to the pay-as-you-go system. This appears to be a reverse shift in the current general shift toward a fund accumulation model. This reverse change has also sounded the alarm for countries that are eager to establish a fund accumulation system: the fund accumulation system places high demands on fund management, and the government's management and monitoring capabilities will affect the success or failure of this system.

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