Old Age Security

This work highlights two severe difficulties with China's current pension system: the problem of the pension burden placed on state-owned enterprises; and the longer-term predicament arising from a rapidly ageing population. The study makes recommendations for a unified pension system.

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This work highlights two severe difficulties with China's current pension system: the urgent and immediate problem of the pension burden placed on state-owned enterprises; and the longer-term predicament arising from a rapidly ageing population. The study recommends a unified pension system that includes both mandatory funded individual accounts and a social insurance scheme. It also endorses a sustainable contribution rate that attaches considerable importance to long-term financial viability, and examines the risks associated with low compliance rates and low interest rates.