The insufficient consumption demand of residents is closely related to changes in the population structure and the pension insurance system. In recent years, the growth rate of China's economy has gradually slowed down. According to statistical data, the proportion of the elderly population in China has shown a trend of increasing year by year. One of the problems existing in the development process of China is the insufficient effective domestic demand, low consumption levels, high savings, and aging population are important factors restricting consumption levels. Pension insurance affects people's disposable income and savings behavior through the role of adjusting income redistribution, thereby affecting people's consumption behavior. The marginal consumption propensity of pension insurance fund expenditure is smaller than the impact of current disposable income on urban residents' consumption, indicating that income level is an important factor affecting urban residents' current consumption. Improving the social security system, broadening the channels for maintaining and increasing the value of pensions, expanding residents' income sources, reducing residents' preventive savings, and improving residents' consumption levels are the only ways to maintain rapid economic growth.