Necessity and Countermeasure Analysis of Pension Finance Development Based on State Space Model

China entered an aging society in the late 1990s, with the deepening of aging and the emergence of pension problems. China's population pension market is extremely large, but the reality is that today's pension burden is mainly borne by families, and the social pension burden and pension security pressure are increasingly heavy. There are still some gaps in the mechanism and system matching with the pension financial policy, and there are cognitive biases at different levels in all sectors of society, which makes the pace of pension financial reform slow down. The financial industry mainly includes banking, trust, insurance and securities. These industries constantly innovate their business in an aging society due to changes in demand, which has led to the constant adjustment and improvement of aging finance. Based on the state space model, this paper analyzes the present situation of Chinese residents' pension, puts forward the concept of pension finance, and systematically demonstrates the necessity of the development of pension finance, so as to improve the pension system and support the development of Chinese residents' pension cause.