The Impact of Health Insurance Coverage and Residents’ Benefits on Residents’ Preventive Savings in the Context of Population Aging

Nanjing University, School of Business, 22 Hankou Road, Gulou District, Nanjing, Jiangsu Province, China

^* Corresponding author: 221098252@smail.nju.edu.cn

Abstract

Under the background of accelerated population aging, the impact of health insurance coverage and the extent of residents’ actual benefits on preventive savings behavior have become increasingly significant. This study investigates the intrinsic mechanisms through which health insurance influences saving behavior amid demographic aging, building on existing research. By analyzing Chinese macro-level data from NBS from 2019 to 2023, including trends in residents’ savings and health insurance participation, the research examines how expanded health insurance coverage and enhanced benefits affect household precautionary savings. The findings reveal that under China’s basic health insurance system, improved benefits for residents lead to a reduction in precautionary savings. This suggests that when individuals perceive greater financial protection against medical expenses, they are less inclined to save as a hedge against future health risks. The study highlights the critical role of health insurance in mitigating household savings pressures, particularly in aging societies where healthcare costs are a major concern. These insights provide valuable implications for policymakers aiming to optimize social security systems and stimulate domestic consumption by reducing unnecessary precautionary savings.