The Study on Group Self -Pooling and Annuitization Schemes Payment on Dynamic Motality Model

Hongmin Xiao, Xiaodan Yang, Zhi’e Ma

As the mortality rate declines year by year and the increase of life expectancy of population brings tremendous pressure on our pension system, it is particularly important to accurately predict the mortality rate. Due to the limited population mortality data in China, this article based on the Lee-Carter model, using Co-integration theory to overcome the limitation of ARIMA model and construct a prediction model of male mortality in China. Meanwhile a Group Self-Annuitization (GSA) with higher payment was introduced and the predicted mortality rate was substituted into the GSA model. Finally we give the endowment insurance proposal that is suitable for our country's national conditions, in the real sense, we can achieve the goal that the citizens in our country should be "empowered and old".