China Is Prepared to Combat 2035 Deadline of Vanishing Pensions, Social Security Admin Says
Xu Wei
DATE:  Apr 24 2019
/ SOURCE:  yicai
China Is Prepared to Combat 2035 Deadline of Vanishing Pensions, Social Security Admin Says China Is Prepared to Combat 2035 Deadline of Vanishing Pensions, Social Security Admin Says

(Yicai Global) April 23 -- China's central government has drafted a host of measures to save the nation from ageing so fast that the pension system collapses. 

The central government has prepared a series of measures which can surely guarantee long-term pension funds, Nie Mingjun, head of the pension bureau under the Ministry of Human Resources and Social Security, said at a press conference today, responding to a research report that suggested otherwise.

The basic pension funds for China's urban employees are likely to run out in 2035 or so, a social security research center under the Chinese Academy of Social Sciences suggested in a report released on April 10.

China will reduce pension premiums to ease companies' financial burdens, as well as encourage firms to include more of their employees into the systems, Nie said. In order to alleviate regional imbalances, China has employed a pension fund adjustment system since the second half of last year, the official said, adding that the implementation is going smoothly.

China's National Social Security Fund, a sovereign wealth fund, has reached CNY2 trillion (USD297.7 billion) in assets, and it will keep on growing, Nie said. The nation has initiated a transfer of a part of state-owned assets to the fund. 

This year, the central government has a budget of CNY528.5 billion (USD78.7 billion) to secure pensions for employees in corporations, Nie said, adding that regional administrations have their own budgets. 

Editor: Emmi Laine

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Keywords:   Pension,Social Insurance