Pay and payment are unified, pay more is a major principle of social insurance. Have the ability to pay the cost of the workers, in addition to the basic old-age insurance for urban workers, should also participate in the enterprise annuity, commercial insurance, in order to maintain retirement level, improve personal pension replacement rate. Similarly, the ability to pay residents also, can participate in the supplementary pension insurance in the basic old-age insurance. "Workers" + "residents" of the basic old-age insurance as the first pillar, "workers" + "resident" supplementary pension insurance as the second pillar, this kind of commercial insurance individual savings endowment insurance as the third pillar is more appropriate. This paper analyzes the implementation situation of each pillar the calculated by China and the major countries in the world than the social average wage replacement rate and the Engel coefficient in recent 10 years, use data to test benefits for retirees living level of protection, and the reasonable assumptions, estimates in enterprise pension and occupational pension the pension replacement rate found pension levels can improve 30-40%, through empirical analysis to verify multi pillar system to establish the necessity, and put forward reasonable suggestions.
