China pension system : the problems and recommendations for urban & rural regions.

• Main Authors: Ng, Yeong Boon., Peh, Jin Bao., Teo, Jeffrey Jun Chek.
• Other Authors: David Alexander Reisman
• Format: Final Year Project
• Language: English
• Published: 2011
• Subjects: DRNTU::Social sciences::Economic development::China
• Online Access: http://hdl.handle.net/10356/43653
• Institution: Nanyang Technological University

China has enjoyed rapid economic growth in the last few decades, but this trend is set to change for the worst. Shifting demographics due to the successful “one-child policy” has led to a rapid greying of China. As the number of elderly increases, so have the obligation to provide for their retirement needs, resulting in escalating deficits in the national social security funds. This paper aims to predict and analyze the burden that might be faced by China in the next few decades, by firstly separating its population and thus pension system into its urban and rural sectors. The logic behind this categorization is that the pension systems introduced by officials to respective sectors have differed since the opening up of China. This paper employs a three cases scenario approach for both sectors to find out the exact numerical burden faced by the Chinese in the year 2030, and the tabulated results have been generally pessimistic. Unless there is an immediate reform, the social pension system of both urban and rural are deemed unsustainable in the long run. Based on the evaluation of the results, this paper has devised a few practical recommendations that will assist China to meet her retirement needs, while still ensuring a sound economic growth level.