If we want to achieve the target replacement rate and maintain the balance of pension funds, we will discuss it from two aspects: affecting the target replacement rate and the balance of pension funds.

The first part analyzes the target replacement rate. The target replacement rate should reach 58.5%, the replacement rate is low, the living standard of retired workers is low, and the balance of payments of pension funds is easy to maintain. If the replacement rate is high, the living standard of retired workers will be high, and the balance of pension funds will be difficult to maintain, and there may be a gap.

According to the development trend of the basic old-age insurance reform, it is assumed that the pension replacement rate will gradually decrease from 80% to 58% within 35 years (2000-2034) and will remain at 58.5% after 2035.