The Impact of Multi-level Pension Insurance Participation on the Upgrading of Household Consumption Structure: Evidence from China

During China’s economic transition from high-speed growth to high-quality development, stimulating domestic demand and optimizing the consumption structure have emerged as critical economic priorities. Drawing on the life-cycle hypothesis, social comparison theory, and Maslow’s hierarchy of needs, this study employs panel data from the China Household Finance Survey (CHFS) to investigate the impact of multi-level pension insurance participation on the upgrading of household consumption structure. The findings reveal that participation in multi-level pension insurance significantly facilitates a shift in household consumption structure from subsistence-oriented to development- and enjoyment-oriented categories. Pension insurance enhances household consumption confidence both by increasing stable absolute expected future income and by improving households’ relative economic standing within their communities. Mechanism analysis further indicates that pension insurance promotes consumption upgrading by alleviating residents’ sense of relative income deprivation. This paper provides empirical evidence supporting the refinement of the multi-level pension insurance system in China, and offers policy insights for mitigating residents’ financial insecurity to foster sustainable consumption upgrading.