The article points out that although China has had the basic economic, population and political environment in constructing the rural pension insurance, the rural residents' income level and their disparity compared with the income of residents in urban areas, as well as a large number of surplus labor in rural areas still restrict the setting-up of the rural residents' basic pension insurance system.Therefore government should improve the rural income level, strengthen government finance transfer payment ability and organization resource construction in order to optimize the rural environment of basic pension insurance system.
