Issues on China's Pension System: Dilemma and Solutions

Abstract

The article examines pension systems modernization in China; the evolution of the approaches to solving pension security problems in view of demographic challenges. The existing regulatory framework of funded pensions, the approaches to refill the empty accounts such as delaying retirement ages as well as abolishing one-child policy are in focus of the research. Population aged 60 or over is the fastest growing cohort, globally, according to the UN data. Currently having 15.2% (2015) of its population aged 60 or over, China is one of the most rapidly ageing nations. By 2030, China will have nearly a quarter of their populations aged 60 or over. Population ageing is projected to have a profound effect on the number of workers as well as pensioners, posing the problem of underscoring the national pension systems’ adaptation to changing conditions; increasing the fiscal and political pressures that the old-age and social protection systems, health care systems are facing.