The Factors Influencing Intention of China’s Middle Class to Make Retirement Plan

Abstract

China’s twice primary baby boom occurred in 1950s and 1962 to 1973, the populationof China from 1949 to 1973 increased from 542 million to 882 million. For majority of baby boomers, they have retired already or face retirement problem in 15 years. In China, the economy achieved a rapidly development in last several decades, as a result of rapid economy development, the price of products increase dramatically and inflation problem is becoming more and more serious. However, the pension system of China is still maintain the original form, the speed of increase of pensions has been unable to catch up the speed of increase of products' price. Thus, to contemporary China’s middleclass, if they only rely on pension system to figure out their retirement lives are becoming more and more unrealistic and illusionary. To most of China’s citizens, they still facing a living problem, especially retirement living. Middle class is a country’s main stay, they common deeply impact a nations’ public opinion and political power. To middle class, nation must pay highly attention, especially in terms of their living standard. Therefore, this research was aimed to identify the relationship between the four determinants (financial literacy, social support, income level and risk tolerance) with China’s middle class’ intention to make retirement plan.