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China considers pension reforms proposal
August 21, 2013, 10:11 am

Official figures released in February this year says China's pension system had covered 484 million people as of 2012 [Getty Images]

Official figures released in February this year says China’s pension system had covered 484 million people as of 2012 [Getty Images]

China is mulling over pension reforms to aid its fast ageing population.

Chinese experts have proposed a new pension scheme, raising the pension age for both men and women to 65 as of 2030.

The current retirement age is set at 60 for men and 50 for women.

China is expecting the percentage of its old population(65 and above) to double by the 2030.

Experts from China’s Tsinghua University drafted the proposal which is now open for public consultation.

“The age could be adjusted for laborers undertaking especially arduous work,” Yang Yansui from Tsinghua University was quoted by state-run news-site People’s Daily.

“We should promote pension reform to prepare for a heavy financial burden,” said Yang.

Official figures released in February this year says China’s pension system had covered 484 million people as of 2012.

A recent report by the US-based Paulson Institute has said that China needs to quickly embrace reforms in its pension sector by centralizing the pension system and moving pension administration out of local governments, embracing pre-funded pensions and creating more long-term investment vehicles.

The report also urged China to repeal or ease the one-child policy that was put in place in 1980.

‘China certainly (today) has the financial resources to support its current population,” the report said.

China’s official family planning authority, the National Population and Family Planning Commission lost some of its influence when it was merged into the Health Ministry in March this year.

 

Source: Agencies

 

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