Problems of Financing Structure and Its Adjustment Based on the Context of New Rural Pension Insurance Policy in China
Suqin Wang, Zhixin Liu

Abstract
New Rural Pension Insurance Policy is a social pension insurance policy implemented in Chinese rural areas. This policy has changed farmers’ self-financing payment and strengthened government's responsibility, but it still has some problems, especially in financing structure. On the one side, the fact that farmers’ self-payment fixed certain grade, causes farmers’ payment to separate from their income. It is impossible to mobilize the enthusiasm of farmers. On the other side, the standard of government subsidies is too low and the standards are different in various areas. In order to solve these problems, inter-temporal choice theory is used to construct farmers’ objective functions to maximize their individual utility functions and meet characteristics of New Rural Pension Insurance Policy. And the government should determine the reasonable ratio between government subsidies and farmers’ self-payment.

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