Purpose/SignificanceThe pension adjustment mechanism is an important part of China's basic endowment insurance, and it is an important part of China's income redistribution, which has a very important impact on the life of retirees in China. After the continuous increase of pensions, China's pension adjustment mechanism is becoming more and more mature. However, there exist some problems such as large differences in treatment adjustment between regions and lack of effective incentives and fairness. As a result, the replacement rate of pensions in China has been declining year by year, which affectsthe quality of life of retirees and increases the economic burden of the government. Studying the pension adjustment mechanism can better realize the rational distribution of pensions, ensure the basic quality of life of retirees in China, maintain social stability, and promote economic development.

Method/ProcessThis paper reviews the previous research of pension adjustment mechanism, collects the results data of the operation of pension adjustment mechanism in recent years, and proposes an optimization strategy for existing problems.

Result/ConclusionChina's pensioninstitution needs to coordinate the relationship between urban enterprises, retirees of agencies and public institutions, and pensions for urban and rural residents. At the same time, it should establish a long-term mechanism for government financial input and institutionalized normal adjustment mechanism, implements a policy of delaying retirement in stages, and increases the value of pension insurance fund.