What Is an Accumulation Phase?

Partial accumulation mode is an integration of the pay-as-you-go model and the full accumulation model, and is a funding model that is compatible with the principles of short-term horizontal balance and long-term vertical balance. The charging rate is determined according to the principle of phased income and expenditure balance, that is, a certain reserve fund is reserved under the premise of meeting the expenditure needs for a certain period (5 to 10 years); the amount of the reserve fund is a variable, and the peak of the population aging is coming Before, it was the accumulation period of the reserve fund; after the aging peak came, it entered the consumption period of the reserve fund.

Partial accumulation mode

Right!
Partial accumulation mode is an integration of the pay-as-you-go model and the full accumulation model, and is a funding model that is compatible with the principles of short-term horizontal balance and long-term vertical balance. The charging rate is determined according to the principle of phased income and expenditure balance, that is, a certain reserve fund is reserved under the premise of meeting the expenditure needs for a certain period (5 to 10 years); the amount of the reserve fund is a variable, and the peak of the population aging is coming Before, it was the accumulation period of the reserve fund; after the aging peak came, it entered the consumption period of the reserve fund.
Chinese name
Partial accumulation mode
Types of
mode
Advantages
Has greater flexibility
Features
Integration of pay-as-you-go and full accumulation, etc.
The advantage of the partial accumulation fundraising model is its greater flexibility, which not only avoids the greater risks of the fund system, but also alleviates the problems of lack of reserves and uneven burden of the pay-as-you-go model.
However, this method of financing is difficult to operate, especially in the grasp of various ratios, it is difficult to achieve just the right. If the various standards and ratios are not set properly, not only will not get the expected results, but will lead to a substantial increase in management costs. Therefore, care must be taken in the design of the system, not only qualitative analysis, but also quantitative analysis.

IN OTHER LANGUAGES

Was this article helpful? Thanks for the feedback Thanks for the feedback

How can we help? How can we help?