The rapid population aging in 21st century calls for a full old-age security system. It is imperative to carry out necessary reforms and break the traditional dual structure that distinguishes rural residents from urban ones and that distinguishes urban residents within cities. To this end, we need to first clarify the key concepts of old-age security, endowment insurance, old-age security system, endowment insurance system and mechanism, and so on. Our target is to set up a new endowment insurance system which relies mainly on social endowment insurance system and (family) household supporting for the elderly, combined with community supporting and mobile supporting as two types of active supplements. The key of the reform and system innovation includes: 1) to set up a system relying mainly on personal account accumulation, and to make the personal account a true account and emphasize its role as main body of the system. 2) to set up a supplement system of enterprise account accumulation, which is closely connected to personal account. It is advisable to apply a relatively lower premium rate for the enterprise account so as to smooth the supplement system's operation. 3) to assign appropriate roles for the government and the market.
