Abstract: The General Office of the State Council issued The Comprehensive Plan for Reducing Social Premium Rates in 2019. This Plan explicitly cuts the unit contribution rate of basic pension insurance for urban workers to 16%, which will pose a greater challenge to the adequacy of pension insurance funds. With the help of the OLG model, this paperstudies the impact of the two policies of reducing the pension insurance contribution rate and delaying retirement on the adequacy of the pension insurance funds. The findings show that, firstly, implementing the pension insurance contribution reduction policy alone will directly lead to a significant decline of fund income in the current pooling account at the steady state period, and indirectly cause an increase in the pooling account fund expenditure and individual account fund income and expenditure through affecting the per capita capital stock and wage level at the steady state, which will exert a certain impact on the adequacy of funds. Secondly, the implementation of the delayed retirement policy alone will directly and indirectly result in a decline and then an increase in the income of the pooling account funds and the individual account funds, a significant decline in the expenditure of the pooling account funds, and a slight decline in the expenditure of the individual account funds. Thirdly, the implementation of the delayed retirement policy in the context of fee reduction will significantly reduce the challenges to the adequacy of funds brought by the fee reduction policy, and both the pooling fund gap and the total fund gap are likely to shrink to the pre-fee reduction level with the gradual delay in the retirement age.

Key words: old-age insurance, contribution rate, delaying retirement, funds adequacy